Shake Shack Inc. Q1 FY2026 earnings call

Rob Lynch thanked team members. First quarter performance showed continued sales momentum with same-shack sales growth despite weather impacts. Grew total revenue by over 14%, had 4.6% same-shack sales growth including 1.4% traffic growth. Delivered 17 new SHACs in Q1. Announced Michelle Hook as new CFO. Focused on delivering value to guests through premium ingredients, culinary innovation, and digital marketing. Operations focus on hospitality and order accuracy. Supply chain optimization for better ingredients and productivity. Licensed business impacted by Middle East conflict but still plans 40-45 openings in 2026.

Total revenue grew by more than 14%. Same-shack sales growth was 4.6% including 1.4% traffic growth. Restaurant-level profit margin expanded by 50 basis points year over year to 21.2%. Total revenue reached $366.7 million in Q1. Company-operated SHAC sales grew 14.3% year-over-year to $354 million. Licensing revenue was $12.7 million in the quarter with licensing sales of $204.3 million up 13.8% year-over-year.

For Q2 2026, expects system-wide unit openings of 24-27, total revenue of $424-428 million, same-shack sales up 3-5%, licensing revenue of $13.5-13.7 million, and restaurant-level profit margin of 24-24.5%. For full year 2026, expects to open 60-65 company-operated shacks, total revenue of approximately $1.6-1.7 billion, licensing revenue of $57-59 million, restaurant level profit margin of 23-23.5%, adjusted EBITDA of $230-245 million.

Weather impacts contributed 240 basis points of negative comp in Q1. Ongoing conflict in the Middle East led to business disruptions for licensed business. Volatility in global and domestic marketplace could impact results.

Q: Brian Vaccaro asked about first quarter comps, consumer behavior, and value initiatives.

A: Relatively consistent sales rates, app and digital channels growing, premium innovation driving demand.

Q: Christine Cho asked about Q2 sales growth guidance and sustainability.

A: Confident in guide due to app growth and premium innovation, World Cup to benefit some markets.

Q: Michael Tammis asked about margin guidance and split of COGS, labor, etc.

A: Confident in margin expansion with supply chain work, revenue softening in back half.

Q: Brian Mullen asked about CFO hire and Project Catalyst.

A: Michelle Hook to contribute, Project Catalyst to create G&A leverage.

Q: Peter Salah asked about pulling forward new unit growth.

A: Acceleration in opening restaurants, impact on pre-opening costs.

Q: Sarah Senator asked about margin and supply chain.

A: Margin growth despite weather, supply chain driving margin expansion.

Q: Anisha Datt asked about loyalty program design.

A: App for new guest acquisition, loyalty platform for brand engagement.

Q: Margaret Mae Binstock asked about paid media and remodels.

A: Media invested in guest acquisition and LTO innovation, remodels for hospitality and productivity