Shake Shack continued to see strong sales growth in the second quarter, but profitability was hit by challenging economic conditions.

The company’s revenue soared 17.2 per cent to $417.6 million, and system-wide sales jumped 13.8 per cent to $625.8 million in the quarter ended July 1.

Most of the growth was driven by network expansion, with 16 company-operated Shacks and 11 licensed Shacks added over the period. On a same-store basis, sales were up 3.5 per cent, including positive traffic of 2 per cent. 

Operating income decreased 7.5 per cent to $20.7 million, and net income slid 8.6 per cent to $16.9 million.

CEO Rob Lynch said the company delivered a solid set of results despite navigating “one of the most challenging cost environments” in many years. 

“While we remain focused on the work ahead, I am encouraged by the resilience of the Shake Shack model and confident in our ability to deliver on our long-term plan. 

“These results reflect our ongoing investments in culinary innovation, targeted marketing, and our digital ecosystem – all designed to drive guest acquisition, frequency, and long-term brand value,” he added.

CFO Michelle Hook added that the results were “healthy” given record-high beef costs
and the company’s deliberate choice to protect value positioning rather than fully offset inflation through pricing.

For the full year, the company expects revenue of $1.6 billion to $1.7 billion and same-store sales to be up by a low single-digit percentage.

Last year, Shake Shack reported revenue of approximately $1.45 billion, with same-store sales improving 2.3 per cent.