By Robb M. Stewart

Shake Shack scaled back its financial guidance as the burger chain continues to face a tough environment.

More than two-thirds of the way into the current quarter, the company said it now expects overall revenue of between $415 million and $420 million for the three months to July 1. That is down from a prior target of $424 million to $428 million.

Licensing revenue is still expected to come in at between $13.5 million and $13.7 million, but sales growth from company-operated locations on a comparable same-store basis is now expected to be 2.5% to 3% against earlier guidance for 3% to 5% growth.

Shake Shack's shares retreated following the shift in guidance, falling 8.4% in premarket trading to $57. The stock had already fallen more than 30% over the last three months.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

By Robb M. Stewart

Shake Shack scaled back its financial guidance as the burger chain continued to face a tough environment.

More than two-thirds of the way into the current quarter, the company said it now expects overall revenue of between $415 million and $420 million for the three months to July 1. That is down from a prior target of $424 million to $428 million.

Shake Shack's shares retreated following the shift in guidance, falling 9.2% in premarket trading to $56.49. The stock had already dropped more than 30% over the prior three months.

Licensing revenue for the second quarter is still expected to come in at between $13.5 million and $13.7 million, but sales growth from company-operated locations on a comparable same-store basis is now expected to be 2.5% to 3% against earlier guidance for 3% to 5% growth. Shake Shack still plans to open about eight licensed premises during the second quarter.

The update reflects the current macroeconomic uncertainty, competitive landscape, and related impacts, Chief Executive Rob Lynch said.

"It's important to emphasize that our fundamental business drivers remain strong," he said.

Shake Shack swung to a loss in the prior quarter after being squeezed by additional investments intended to drive traffic while consumers spend less at restaurants. It notched a first-quarter loss of $290,000 on the back of a 14% rise in revenue to $366.7 million, while same-store sales for the period grew 4.6%.

High beef prices have also been hurting Shake Shack's bottom line. Lynch last month said that he expects prices to stay elevated.

The company, which has more than 690 locations, including over 445 in the U.S., said that for the fiscal year to Dec. 30 it now expects net income of $45 million to $55 million compared with the $50 million to $60 million previously anticipated.

Adjusted earnings before interest, taxes, depreciation and amortization are forecast to come in between $225 million and $235 million, versus prior guidance for $230 million to $245 million.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

June 02, 2026 09:16 ET (13:16 GMT)

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