Overview
- Shares fell nearly 30% Thursday after the chain reported a $2.6 million operating loss and missed Wall Street targets.
- Revenue rose 14% to $366.7 million versus estimates near $371–$372 million, with break-even adjusted earnings and a $294,000 net loss against a profit a year ago.
- Adjusted EBITDA was $37.0 million, about 19% below forecasts, and free cash flow turned negative at $38.7 million.
- Executives cited higher beef prices, increased general and administrative spending, winter storms, and Middle East disruptions that slowed tourism and limited hours at some licensed stores.
- The company named Michelle Hook as chief financial officer effective May 11 and opened 17 company-run Shacks plus five licensed locations in the quarter.