The fast-casual chain lowered Q2 revenue and full-year EBITDA forecasts due to higher costs and expansion expenses.
Shake Shack (NYSE: SHAK) revised its second-quarter revenue guidance downward to $415 million-$420 million from $424 million-$428 million, citing margin pressures. The company also reduced its full-year adjusted EBITDA outlook to $225 million-$235 million from $230 million-$245 million.
In the first quarter, revenue rose 14.3% year over year to $366.7 million, while same-store sales increased 4.6%. However, net income swung to a $0.3 million loss from a $4.5 million profit a year earlier, driven by higher beef costs, pre-opening expenses, and investments in technology and marketing.
The company opened 17 company-operated and five licensed locations in Q1, maintaining its aggressive expansion pace. Despite growth, profitability remains a challenge as costs weigh on margins.