SHAKNYSERetail-Eating & Drinking PlacesUS GAAP · USD

Shake Shack Inc.

Shake Shack Inc. operates a fast-casual restaurant brand built around made-to-order burgers, chicken, fries, shakes, and other American-style menu items. The company runs company-operated Shacks and also licenses the brand to partners in selected markets, with a business footprint centered in the United States and a growing international presence.

Revenue1,445m USD
+15.4 %y/y
Operating profit (EBIT)62.5m USD
+1,957.5 %y/y
EBIT margin4.3%
+4.1 ppy/y
Net income45.7m USD
+348.0 %y/y
Free cash flow56.5m USD
+58.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50005001,0001,500m USD2020: 523 m USD2020: EBIT -44 m USD20202021: 740 m USD2021: EBIT -16 m USD20212022: 900 m USD2022: EBIT -27 m USD20222023: 1,088 m USD2023: EBIT 5.9 m USD20232024: 1,253 m USD2024: EBIT 3.0 m USD20242025: 1,445 m USD2025: EBIT 63 m USD20251,44563
RevenueOperating profit (EBIT)

Business

Share of revenue
Company-operated Shack sales97 %

Food, beverages, and branded merchandise sold at company-operated restaurants.

Licensing revenue4 %

License fees, opening fees, and territory fees from licensed Shacks.

Products

Reported · share of revenue
96.3%FY2025100 %
  • Shack Sales96.3 %
  • Sales Based Royalties3.6 %
  • Initial Territoryand Opening Fees0.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Shake Shack sells primarily to consumers seeking premium quick-service and fast-casual dining, especially guests drawn to burgers, chicken, shakes, and a branded dining experience. Its licensed business serves local operators and partners that develop Shacks in specific territories, while the company-operated base serves everyday restaurant guests in urban, suburban, travel, and destination locations.

Company-operated restaurant guests

Buy burgers, chicken, fries, shakes, and beverages at company-run Shacks because of the brand, menu quality, and dining experience.

Licensed market consumers

Purchase Shake Shack menu items at franchised/licensed Shacks operated by partners in domestic and international markets.

License partners

Pay opening fees, territory fees, and ongoing royalties to develop and operate Shacks in approved geographies.

Travel and venue customers

Buy through licensed Shacks in airports and other high-traffic venues where convenience and brand recognition matter.

Strategy

Shake Shack’s strategy centers on opening new Shacks, clustering in existing markets, and using brand strength to deepen guest awareness and frequency. It also emphasizes menu innovation, digital engagement, and a more unified marketing model to support demand and differentiate the brand from other restaurant concepts.

Expand the Shack footprintMedium term

Restaurant growth drives system sales and broadens brand reach.

Strengthen brand demandShort term

A distinctive brand supports traffic, pricing power, and guest loyalty.

Improve operating efficiencyMedium term

Scale requires tighter sourcing, logistics, and back-of-house productivity.

Geography

2025

Shake Shack is headquartered in the United States and its core restaurant base is concentrated there, with company-operated Shacks and licensed locations across domestic markets. The company also has licensed operations in international markets, and its trademarks are registered across many countries, supporting brand expansion outside the U.S.

United States97 %
Other countries (US filing)2.6 %

Share of the revenue the company reports by geography.

Risks

Shake Shack faces execution risk tied to opening new restaurants, selecting good sites, and maintaining guest traffic as it expands. It is also exposed to food safety, supply chain, lease, and international licensing risks, all of which can affect restaurant performance, brand reputation, and royalty revenue.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Site selection and expansion execution1Food safety and contamination2Supply chain and logistics disruption3Cannibalization from clustered expansion4Lease and occupancy obligations5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Site selection and expansion executionImpact: HighLikelihood: Medium

    Growth depends on opening Shacks in attractive locations on time and on favorable terms.

    Exposure: Company-operated and licensed Shacks

  2. Food safety and contaminationImpact: HighLikelihood: Medium

    Restaurant brands rely on consistent food quality and safe handling across the supply chain.

    Exposure: All Shacks and third-party delivery channels

  3. Supply chain and logistics disruptionImpact: HighLikelihood: Medium

    The company depends on suppliers, distributors, and imported or proprietary ingredients.

    Exposure: International licensed Shacks and U.S. distribution

  4. Cannibalization from clustered expansionImpact: MediumLikelihood: Medium

    New Shacks near existing units can reduce sales at older locations.

    Exposure: Domestic market clusters

  5. Lease and occupancy obligationsImpact: MediumLikelihood: Medium

    Company-operated Shacks are on leased premises with long contractual commitments.

    Exposure: Real estate and store-level economics

Accounting

Judgemental items
Revenue split between Shack sales and licensing revenue

Different revenue streams have different economics and growth drivers.

Impact: Affects comparability of company-operated versus partner-driven growth

Lease accounting

Most restaurants operate on leased premises with long terms and renewals.

Impact: Affects balance sheet liabilities and occupancy-related expense presentation

Long-lived asset impairment

Restaurant assets are tested using market service area and store-level cash flow assumptions.

Impact: Can create impairment charges when locations underperform

Tax Receivable Agreement

Liability depends on future taxable income and related tax benefits.

Impact: Can affect reported liabilities and future cash outflows

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026