Shake Shack, Inc. ( SHAK ) shares are trading lower by more than 16.6% at last check on Thursday.

The burger chain reported second-quarter adjusted earnings per share of 44 cents, beating the analyst consensus estimate of 37 cents.

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Quarterly sales of $356.466 million (+12.6% year over year) outpaced the Street view of $352.299 million.

System-wide sales reached $549.9 million, up 13.7% compared to the year-ago period. Same-Shack sales increased by 1.8% year-over-year.

Operating income rose to $22.4 million from $10.8 million year over year. Restaurant-level profit totaled $82.2 million (up 22.5% year over year), representing 23.9% of Shack sales. Restaurant-level profit margin improved 190 basis points to 23.9% of Shack sales.

Adjusted EBITDA grew 24.8% on a year-over-year basis to $59 million. Adjusted EBITDA margin expanded to 16.5%, higher than 14.9% in the year-ago period.

Shake Shack ( SHAK ) opened 13 new company-operated locations during the quarter, including two drive-thru locations, plus nine new licensed Shacks.

Outlook: The firm expects third-quarter sales to range between $358.0 million and $364.0 million, compared to the analyst estimate of $362.9 million. Shake Shack ( SHAK ) projects a third-quarter restaurant-level profit margin of 22% to 22.5%.

The company reaffirmed its full-year 2025 sales outlook of $1.400 billion to $1.500 billion, in line with the $1.445 billion consensus estimate. Restaurant-level profit margin is projected to be 22.5%.

In the coming three years, restaurant-level margin is expected to expand by at least 50 basis points each year.

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