Adjusted EBITDA grew 24.8% year-over-year to $58.9 million, representing 16.5% of total revenue, the highest adjusted EBITDA level on record for Q2.
Company-operated Shack sales grew 12.4% year-over-year to $343.2 million with 13 new openings.
Food and paper costs were 28.2% of Shack sales, up 40 basis points due to mid-single-digit beef cost increases.
Labor and related expenses improved significantly, down 270 basis points to 25.7% of Shack sales due to strong labor management.
Licensed business revenue grew 20.2% year-over-year to $13.3 million with sales up approximately 16%.
Net income attributable to Shake Shack was $17.1 million or $0.41 per diluted share; adjusted pro forma net income was $19.5 million or $0.44 per diluted share.
Operating cash flow grew 21% year-over-year to a record $65 million; cash and cash equivalents totaled $336.8 million.
Other operating expenses increased slightly due to marketing and digital mix investments.
Restaurant-level profit reached $82.2 million, or 23.9% of Shack sales, a 190 basis point improvement year-over-year, highest Q2 margin since 2019.
Shake Shack reported total revenue of $356.5 million in Q2 2025, exceeding guidance.
System-wide sales grew 13.7% year-over-year to $549.9 million, supported by 22 new Shack openings and positive same-Shack sales growth of 1.8%.
EPS grew 24.1% to $5.45 per diluted share, driven by higher gross margins and lower share count, partially offset by lower volumes and increased brand investments.
First half 2025 revenue grew 3.6%, gross margin was 49.1%, and EPS was $7.58, with shipments ahead of depletions.
Gross margin expanded by 380 basis points to 49.8%, benefiting from brewery efficiencies, procurement savings, price increases, and product mix, partially offset by inflation and tariffs.
In Q2 2025, depletions decreased 5% and shipments decreased 0.8% year-over-year, driven by declines in Truly Hard Seltzer and Sam Adams partially offset by growth in Sun Cruiser and Dogfish Head.
Operating cash flow exceeded $125 million in the first half, enabling $111 million in cash returns to shareholders year-to-date.
Revenue increased 1.5% due to pricing and favorable product mix despite lower volumes.
Dafinchi