We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shake Shack Expands Latin America Presence With Brazil Entry
Read MoreHide Full Article
Key Takeaways
Shake Shack plans 40 Brazil locations by 2036, with its first Sao Paulo restaurant set to open in 2027.
The Bold Hospitality partnership leverages local expertise and suppliers to support SHAK's Brazil entry.
SHAK's Q2 licensing revenues rose 7.1% to $14.2M, supporting its goal of 40-45 licensed openings in 2026.
Shake Shack Inc. (SHAK - Free Report) is expanding its footprint in Latin America through a new licensing partnership with Bold Hospitality Company to enter Brazil. The move marks another milestone in the company's international growth strategy, following seven years of operations in Mexico and its planned expansion into Panama.
Brazil has been among Shake Shack's most requested international markets. The planned entry is expected to broaden brand awareness, attract new customers and create additional growth opportunities across the region.
Shake Shack Partners With Bold Hospitality for Brazil Expansion
Under the agreement, Shake Shack plans to develop 40 locations across Brazil by 2036, with its first restaurant scheduled to open in São Paulo in 2027. The planned rollout is expected to deepen the company's presence in Latin America while creating a new avenue for long-term licensing revenues.
Bold Hospitality Company, a São Paulo-based hospitality operator, brings extensive experience in Brazil's restaurant industry. The company operates brands such as Outback Steakhouse, Abbraccio and Aussie and expects to end 2026 with 217 restaurants across 22 states and the Federal District.
The partnership will combine Shake Shack's premium fast-casual positioning with Bold Hospitality's local market expertise and established restaurant operations. Shake Shack also plans to work with Brazilian producers and suppliers to deliver its signature offerings, including ShackBurger, Chicken Shack, crinkle-cut fries and frozen custard, while incorporating local flavors.
International Expansion Supports SHAK's Growth Strategy
The Brazil agreement aligns with Shake Shack's broader strategy of accelerating global development through licensing partnerships. The company operates more than 740 locations worldwide, including approximately 475 across 36 U.S. states and the District of Columbia and more than 265 international locations.
The licensed business continues to support the company's expansion efforts. In the second quarter of 2026, licensing revenues increased 7.1% year over year to $14.2 million, while total licensing sales rose 7.6% to $222.4 million. Shake Shack opened eight net new licensed restaurants during the quarter and continues to target 40-45 licensed openings for 2026. Management highlighted strong licensed-business performance in Canada, the United Kingdom and parts of China, despite geopolitical disruptions affecting operations in the Middle East.
Shares of SHAK have gained 13.9% in the past three months against the Zacks Retail - Restaurants industry’s 14.9% dip. Shake Shack continues to benefit from restaurant expansion, positive traffic trends, digital engagement and a growing international footprint. However, elevated beef prices, higher operating costs and intense competition remain concerns. Geopolitical instability in the Middle East also continues to pressure licensed operations.
Image Source: Zacks Investment Research
SHAK’s Zacks Rank & Other Key Picks
Currently, Shake Shack carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 8.5% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 228.6%, on average. CBRL stock has surged 122% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 1% and 81.3%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 23.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.8% and 89.5%, respectively, from the prior-year levels.
View the Zacks #1 Rank List
Image: Bigstock
Shake Shack Expands Latin America Presence With Brazil Entry
Key Takeaways
Shake Shack Inc. (SHAK - Free Report) is expanding its footprint in Latin America through a new licensing partnership with Bold Hospitality Company to enter Brazil. The move marks another milestone in the company's international growth strategy, following seven years of operations in Mexico and its planned expansion into Panama.
Brazil has been among Shake Shack's most requested international markets. The planned entry is expected to broaden brand awareness, attract new customers and create additional growth opportunities across the region.
Shake Shack Partners With Bold Hospitality for Brazil Expansion
Under the agreement, Shake Shack plans to develop 40 locations across Brazil by 2036, with its first restaurant scheduled to open in São Paulo in 2027. The planned rollout is expected to deepen the company's presence in Latin America while creating a new avenue for long-term licensing revenues.
Bold Hospitality Company, a São Paulo-based hospitality operator, brings extensive experience in Brazil's restaurant industry. The company operates brands such as Outback Steakhouse, Abbraccio and Aussie and expects to end 2026 with 217 restaurants across 22 states and the Federal District.
The partnership will combine Shake Shack's premium fast-casual positioning with Bold Hospitality's local market expertise and established restaurant operations. Shake Shack also plans to work with Brazilian producers and suppliers to deliver its signature offerings, including ShackBurger, Chicken Shack, crinkle-cut fries and frozen custard, while incorporating local flavors.
International Expansion Supports SHAK's Growth Strategy
The Brazil agreement aligns with Shake Shack's broader strategy of accelerating global development through licensing partnerships. The company operates more than 740 locations worldwide, including approximately 475 across 36 U.S. states and the District of Columbia and more than 265 international locations.
The licensed business continues to support the company's expansion efforts. In the second quarter of 2026, licensing revenues increased 7.1% year over year to $14.2 million, while total licensing sales rose 7.6% to $222.4 million. Shake Shack opened eight net new licensed restaurants during the quarter and continues to target 40-45 licensed openings for 2026. Management highlighted strong licensed-business performance in Canada, the United Kingdom and parts of China, despite geopolitical disruptions affecting operations in the Middle East.
Shares of SHAK have gained 13.9% in the past three months against the Zacks Retail - Restaurants industry’s 14.9% dip. Shake Shack continues to benefit from restaurant expansion, positive traffic trends, digital engagement and a growing international footprint. However, elevated beef prices, higher operating costs and intense competition remain concerns. Geopolitical instability in the Middle East also continues to pressure licensed operations.
Image Source: Zacks Investment Research
SHAK’s Zacks Rank & Other Key Picks
Currently, Shake Shack carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Five Below, Inc. (FIVE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 68.3%, on average. FIVE stock has gained 8.5% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Five Below’s fiscal 2027 sales and EPS indicates growth of 20.1% and 57.6%, respectively, from the year-ago period’s levels.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 228.6%, on average. CBRL stock has surged 122% year to date.
The Zacks Consensus Estimate for Cracker Barrel's 2026 sales and EPS indicates a year-over-year decline of 1% and 81.3%, respectively, from the prior-year levels.
FIGS, Inc. (FIGS - Free Report) has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 23.8% year to date.
The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 19.8% and 89.5%, respectively, from the prior-year levels.