Shake Shack Lowers Q2 Guidance, Shares Drop 11% After Strong Q1

Shake Shack lowered its second-quarter revenue guidance to a range of $415 million to $420 million from the prior forecast of $424 million to $428 million. 5% to 3% from the earlier range of 3% to 5%. Shares fell 11% in the late-morning cash session and reached their lowest level since November 2023.

Baird analyst David Tarantino said the new outlook is viewed as incrementally negative for Shake Shack. 6% reading. He added that the updated guidance ranges may be attributed to new CFO Michelle Hook, who started on May 11, and a desire to set a more achievable bar going forward.

7 million and restaurant-level operating margin of 22% to 23%. The company expects about 16 company-operated openings.

U.S. In a corporate presentation, Shake Shack wrote that first-quarter results were particularly encouraging in the face of a challenging macro environment and inclement weather. The company reported a small multi-million-dollar loss in the first quarter despite a 14% revenue increase.

com reported that the downgrade adds to concerns that higher beef prices and other input prices are compressing margins.

It also reported concerns that cash-strapped consumers are dialing back purchases on higher-priced menu items. Shares are now roughly 60% off their peak.