Shake Shack Inc. SHAK 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.
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SHAK’s Zacks Rank & Other Key Picks
Currently, Shake Shack carries a Zacks Rank #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).