Fast-food chain Shake Shack (NYSE: SHAK) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
Shake Shack beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $356.5 million, up 12.6% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Shake Shack a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Shake Shack’s revenue to grow 14.8% year on year to $363.8 million, in line with the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shake Shack has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Shake Shack’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 4.8%, missing analysts’ expectations by 0.5%, and Domino's reported revenues up 6.2%, topping estimates by 0.9%. Domino's traded up 2.2% following the results.
Read our full analysis of The Cheesecake Factory’s results here and Domino’s results here.
Investors in the restaurants segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Shake Shack is down 3.3% during the same time and is heading into earnings with an average analyst price target of $119.68 (compared to the current share price of $91.50).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
