Shake Shack Inc. (SHAK:NYSE)
Shake Shack Inc., the widely popular New York- based food retailer of their famous hamburgers, hot dogs, shakes, and crispy chicken; reported earnings that blew away analyst expectations for their first quarter. Just after the earnings report hit the wires in the aftermarket, shares rallied strong, closing up 5.5% at $36.16 or up $1.90. In the regular trading session, shares only moved slightly and closed down $0.04 at $34.26.
Shake Shack Earnings
The company reported earnings of $0.07 per share on 1.5 million dollars of net income for the first three months of fiscal 2015. The same quarter last year they had reported a loss. The biggest surprise was that the company’s revenue rose a whopping 43%, which was far greater than any analysts had been expecting. As a fairly new IPO Company, they have amassed a whopping $65.8 million dollars in cash and cash equivalents since going public.
“In terms of the outlook for the 2016 full year, the company expects to have total revenues in the range of $245 million to $249 million, up from the previous guidance of $237 million to $242 million. Also the company expects Same-Shack sales growth between 4% and 5%, up from 2.5% and 3.0%. There are consensus estimates calling for $0.38 in EPS on $242.87 million in revenue for the 2016 full year”.-247WallSt.com
SHAK Technicals
When we look at the daily price chart, we will see a red down – trending line and a green line trending slightly downward. The red line represents the area of resistance, and the green line indicates the area of support. Today’s stock market opening price will probably fall within the red and green line, but closer to the upper range toward the red line. Many eyes of traders and investors will be watching to see if this earnings beat will help propel the prices of Shake Shack to move through the red resistance line and gather new steam in the weeks ahead.
CEO Comments
Randy Garutti, CEO of Shake Shack, commented:
“With the extraordinary results in Q1, we are off to a strong start to the year. We have continued to execute on our growth strategy and drive record results and engagement with our guests, while making crucial investments in our team and our Shacks. The recent launch of the Chick’n Shack at all domestic company-operated locations has driven traffic growth and created an entirely new way our guests can enjoy the Shack. During the quarter, we opened three domestic company-operated Shacks including our first Shack in California in the heart of West Hollywood, which has been one of the strongest openings in our 12-year history. We are incredibly excited about the 2016 pipeline and have now raised our revenue expectations and increased guidance to open at least 16 domestic company-operated Shacks this year. We’re looking forward to a great year ahead.” -247WallSt.com
Company Profile
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks). Shacks offers hamburgers, hot dogs, crispy chicken, crinkle-cut fries, shakes, frozen custard, beer, shakes, wine, and other products. As of December 30, 2015, it had 84 Shacks, including 44 domestic company-operated Shacks, 5 domestic licensed Shacks, and 35 international licensed Shacks in 12 states in the United States, the District of Columbia, and 10 countries. The company was founded in 2004 and is headquartered in New York, New York. -YahooFinance
