Shake Shack Shares Fall After Weak Q3 Outlook

Shake Shack reported strong Q2 2025 results, with revenue up 12.6% year over year to $356.5 million and adjusted earnings of $0.44 per share, both surpassing analyst expectations. Operating margins and free cash flow improved, and the chain grew to 600 locations. However, same-store sales rose only 1.8%, missing estimates, and the company forecasted lower-than-expected revenue for Q3 due to inflation and cautious consumer spending. This guidance contributed to an 11% drop in Shake Shack's share price, despite its outperformance of the S&P 500 so far in 2025. Jamie Griffin was named Chief People Officer as part of ongoing organizational changes. While long-term growth prospects remain strong, concerns over near-term earnings and sales performance are affecting investor sentiment.