Shake Shack’s sales rise, thanks in part to the World Cup

Shake Shack’s sales rise, thanks in part to the World Cup

Wed, August 5, 2026 at 4:46 PM GMT+3 3 min read

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Shake Shack's same-store sales rose 3.5% in the second quarter as the company's digital business, and the World Cup, helped it withstand the onslaught of discounts from major burger rivals.

But beef costs continue to be a problem. Net income in the quarter declined 9% in the period to $16.9 million. Restaurant-level profit margin was 23% of sales, down from 23.9% in the same period a year ago.

Though CEO Rob Lynch noted that the profitability result was still impressive given the circumstances, calling it "a healthy result given record-high beef costs and the deliberate choice to protect our value positioning rather than fully offset inflation through pricing."

Revenues at the company grew 17.2% to $417.6 million while systemwide sales, which also includes the company's substantial licensing business, grew 13.8% to $625.8 million.

Shake Shack executives told analysts on the company's earnings call Wednesday that the World Cup provided a boost to same-store sales in the period. They estimated the impact from the event improved same-store sales by 90 basis points in the period.

Digital orders also drove sales. The company has been pushing app orders, using incentives such as menu items priced at $2, $4, or $6. App sales rose 30% year over year and customers who use the app visit more frequently and spend more in the process.

Executives did warn that comparisons get tougher in the second half of the year. The third quarter a year ago was the chain's strongest since 2023, potentially setting the stage for weaker performance.

Yet they also told analysts on the earnings call Wednesday that same-store sales were their strongest toward the end of the period.

The brand has also withstood a massive value push from lower-priced fast-food chains that have aggressively courted customers with value. "We've battled up against some really deep discounting, $5 meal deals and what have you," Lynch told analysts. "So, we feel like our business model has been resilient in the face of that competitive activity."

Shake Shack opened 16 locations in the quarter, the most it has ever added in the second period.

That continues a period of more aggressive expansion for the burger chain, which has evolved its business from a special occasion concept into one that gets more regular visits. Shake Shack is on pace to open as many as 65 restaurants this year.

The chain currently operates 703 locations globally, including 406 corporate stores and 297 licensed locations.

As for beef costs, executives said that inflation was "pronounced" in the first half of the year but suggested that those costs have peaked. Yet they will remain high in the second half of 2026.