Shares of Shake Shack (NYSE:SHAK) dropped about 5.5% on Monday after the burger chain reported preliminary fourth-quarter revenue that missed analyst forecasts.
The company said preliminary Q4 revenue totaled $400.5 million, falling short of the consensus estimate of $409 million. For the full fiscal year 2025, Shake Shack generated total revenue of $1.45 billion, including $54.1 million from licensing.
Despite the top-line miss, Shake Shack delivered positive same-Shack sales growth, with sales up 2.1% in the fourth quarter versus 2024 and 2.3% for the full year. Management attributed the softer-than-expected Q4 revenue to unfavorable weather conditions in heavily penetrated regions such as the Northeast during the final six weeks of the quarter.
Chief executive Rob Lynch said customer traffic remained positive during the period, supported by menu innovation such as the “Big Shack” and targeted value initiatives, including the “$1,$3,$5” in-app promotion.
Looking ahead, Shake Shack expects fiscal 2026 revenue to range between $1.6 billion and $1.7 billion, compared with analyst expectations of about $1.65 billion. Same-Shack sales are projected to grow at a low single-digit rate.
During fiscal 2025, the company opened 45 new company-operated restaurants, including 15 in the fourth quarter. For 2026, Shake Shack plans to add roughly 55 to 60 company-operated locations, alongside 40 to 45 licensed openings.
The group also reiterated its long-term ambition to expand to more than 1,500 company-operated restaurants, up from 373 currently. Over fiscal years 2025 to 2027, Shake Shack is targeting low-teens percentage growth in both total revenue and system-wide unit count.