Shake Shack Inc. (NYSE:SHAK) shares are down during Thursday’s session, trading lower by 28% as the company faces scrutiny following its latest financial results.

Q1 In Detail

The company reported first-quarter sales of $366.737 million (+14.3% year over year), missing the analyst consensus estimate of $371.898 million. Sales included $354 million of Shack sales and $12.7 million of Licensing revenue.

The company reported system-wide sales of $558.3 million for the quarter, up 14.1% year over year, while Same-Shack sales increased 4.6%.

Restaurant-level profit margin expanded to 21.2% from 20.7% a year ago.

Adjusted EBITDA decreased to $36.965 million, compared with $40.745 million a year ago. Adjusted EBITDA margin contracted to 10.1% from 12.7% a year ago.

Shake Shack said it has opened 17 new company-operated Shacks and five new licensed Shacks.

“The strength of our pipeline and the compelling cash -on-cash returns provide the confidence to raise our full-year development guidance to 60-65 new Company-operated Shacks, up from our prior range of 55 to 60,” the company said in a statement.

Shake Shack exited the quarter with cash and equivalents worth $313.65 million. Long-term debt at quarter-end totalled $247.993 million.

The company said it expects food and paper inflation to decline in the low single-digit range in 2026 despite higher beef costs, supported by continued supply chain initiatives, while beef inflation is projected to remain at high single-digit levels.

Outlook

For 2026, the firm said it expects revenues of $1.6 billion to $1.7 billion, and a restaurant-level profit margin of 23%-23.5%. Shake Shack sees adjusted EBITDA of $230 million-$245 million.

For the second quarter, Shake Shack sees revenues of $424 million to $428 million.

Finance Leadership

In a separate release, Shake Shack said it appointed Michelle Hook as chief financial officer, effective May 11, 2026.

Hook will oversee the company's accounting, treasury, financial planning, tax, investor relations and external reporting functions.

She joins from Portillo's, where she served as CFO since 2020 and helped lead the company's 2021 public listing.

Before Portillo's, Hook spent more than 17 years at Domino's Pizza Inc. in various finance and investor relations leadership roles.

CEO Rob Lynch said Hook's restaurant industry and public company experience would support Shake Shack's long-term expansion plans.

Technical Analysis

The stock is currently trading significantly below its moving averages, with the 20-day simple moving average (SMA) at $100.11, indicating it is 24.2% below this key level. The 50-day SMA stands at $94.80, and the stock is 20% below this average as well, suggesting a bearish trend.

The primary momentum indicator, the Relative Strength Index (RSI), is at 48.47, indicating a neutral position. This suggests that the stock is neither overbought nor oversold, which may imply a potential for further volatility in the near term.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Shake Shack, highlighting its strengths and weaknesses compared to the broader market:

  • Value Rank: 44.56 — The stock is trading at a moderate premium relative to peers.
  • Growth Rank: 86.51 — Indicates strong growth potential compared to the market.
  • Momentum Rank: 24.67 — The stock is underperforming the broader market.

The Verdict: Shake Shack’s Benzinga Edge signal reveals a mixed profile with strong growth potential but weak momentum indicators. This suggests that while the company may have opportunities for expansion, it is currently facing challenges in maintaining market performance.

Price Action

SHAK Stock Price Activity: Shake Shack shares were down 28.38% at $69.13 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

Photo by Ned Snowman via Shutterstock