How bad are Shake Shack’s earnings?
Unfortunately, this is dragging down an otherwise solid earnings report from Shake Shack. That includes its adjusted losses per share of 11 cents coming in above analysts’ estimate of -17 cents. The company’s revenue of $203.26 million also just scraps past Wall Street’s estimate of $203.25 million.
What is wrong with Shake Shake?
But one of the big problems that Shake Shake is facing is that many of its historically most-profitable restaurants have been in large cities. With the remote-work trend, these locations have not seen a full business recovery.
Will Jack in the box’s acquisition of Del Taco benefit Shake Shack (Shak)?
Del Taco will have a new owner: Jack in the Box, which opened its first location in 1951. Shake Shack (SHAK) is likely to benefit from various digital initiatives and investments plans, and increased focus on digital delivery channels. Is Shake Shack (NYSE:SHAK) A Risky Investment?
How many restaurants does Shake Shack have?
Helping to drive revenue was the fact that the company had 218 company-operated restaurants and 151 licensed locations at the end of the fourth quarter of 2021, compared to 183 and 128, respectively, in the year-ago period. Shake Shack opened 19 stores in the fourth quarter of 2021.
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Is Shake Shack losing money?
Shake Shack said it lost $9.7 million, or 25 cents a share, in the fourth quarter, compared with a loss of $19.4 million, or 50 cents a share, in the year-ago period. Adjusted for one-time items, the company lost 11 cents a share in the quarter.
Is Shake Shack a good stock to buy?
Industry trading multiples show that Shake Shack is currently trading below its slower-growth competition while projected revenue estimates for 2022 highlight potential 55% increase in today's share price. I view Shake Shack as a long-term buy and hold with this being a great entry point.
How is Shake Shack doing financially?
Excluding the 53rd week, Shack system-wide sales in the fiscal year 2021 increased 47.6%. Operating loss for the fiscal year 2021 was $15.9 million compared to operating loss of $43.9 million in the same period last year.
Is Shake Shack in debt?
What Is Shake Shack's Net Debt? As you can see below, Shake Shack had US$243.8m of debt, at March 2022, which is about the same as the year before.
Who owns Shake Shack?
Leonard Green & PartnersShake Shack / Parent organizationLeonard Green & Partners is an American private equity investment firm founded in 1989 and based in Los Angeles. The firm specializes in private equity investments. LGP has invested in over 95 companies since its inception, including Petco and The Container Store. Wikipedia
Is Shake Shack a public company?
Shake Shack became a publicly-owned company through an initial public offering (IPO) in early 2015 and now commands a market capitalization of $3.16 billion, as of February 2022.
Why is Shake Shack so popular?
The biggest reason Shake Shack stands out from everyone else is its fine dining mentality. All the company leaders have fine dining roots. The company continues to have a deliberate strive for excellence. The result is sophistication in taste, looks, and feel of the whole Shake Shack experience.
What is Shake Shack's revenue?
459.3 million USD (2018)Shake Shack / Revenue
A partnership with Grubhub is hurting same-Shack sales in the near term
As a technology and consumer goods specialist for the Fool, Steve looks for responsible businesses that positively shape our lives. Then he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.
What happened
Shares of Shake Shack ( NYSE:SHAK) fell 24.7% in November, according to data from S&P Global Market Intelligence, after the restaurant chain announced underwhelming third-quarter 2019 results and mixed guidance.
So what
That's not to say Shake Shack's quarter looked bad at first glance. Revenue climbed 31.9% year over year to $157.8 million, translating to adjusted pro forma net income of $10 million, or $0.26 per share (up from $0.21 a year earlier).
Now what
Garutti did insist that while it remains to be seen exactly how much volatility the Grubhub move will cause, "the reality is, this represents short- to mid-term revenue risk."
Key Points
Shake Shack continues to rebound from the worst of the pandemic, but the future is clouded by the ongoing impacts of the coronavirus.
NYSE: SHAK
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What happened
Shares of Shake Shack ( SHAK 2.77% ), a hamburger restaurant chain, fell as much as 14% in the first few hours on Friday. The big news came out after the close on Thursday, when the company reported fourth-quarter 2021 earnings. There were positives and negatives to digest, and investors obviously came away with a glass-half-empty feel.
So what
Revenue was $203 million in the fourth quarter of 2021, up 29% from the same stanza of 2020. The top line in the fourth quarter was roughly in line with analyst expectations. That said, the fourth quarter in 2020 included an extra week. Excluding that week, fourth quarter 2021 sales were up an even more impressive 38.8%.
NYSE: SHAK
But one of the big problems that Shake Shake is facing is that many of its historically most-profitable restaurants have been in large cities. With the remote-work trend, these locations have not seen a full business recovery.
Now what
Shake Shack is a fast-growing restaurant chain focused on expanding its geographic presence. So the fact that it is bleeding red ink isn't necessarily all that shocking. But an expanding footprint appears to be covering up still-material headwinds at existing restaurants, notably in urban settings.
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Fourth-quarter results disappointed investors as the costs of rapid growth hurt near-term results
As a Motley Fool Industrial Specialist, I use my marketing and business background in the automotive industry to evaluate major automakers and other large industrial corporations. Follow me on twitter for tweets about stocks, cars, sports, and anything I find amusing. Follow @DanielMillerTMF
What happened
Shares of Shake Shack ( NYSE:SHAK), a burger chain with more than 280 locations in 30 states, dropped more than 16% early Tuesday morning as the market absorbed disappointing fourth-quarter results.
So what
Fourth-quarter sales increased 22% to $151.4 million, falling short of analysts' estimates of $153 million. But much of that increase was due to store openings as the company's same-store sales declined 3.6%.
Now what
One development for investors to keep an eye on is Shake Shack's decision to partner exclusively with Grubhub ( NYSE:GRUB) for delivery, when previously many Shake Shacks had multiple partners.
Investors are worried about a prolonged slowdown for the "better burger" chain
Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. Follow @tmfsigma
What happened
Shake Shack ( NYSE:SHAK) shareholders are trailing the market this year as their stock fell 11% compared to a 4% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.
So what
Shake Shack initially jumped ahead of all these rivals on hopes that the company might surpass management's ambitious growth targets and more than double its store count over time. That enthusiasm waned after its fourth-quarter report showed declining traffic trends that were amplified by temporary closures related to the COVID-19 pandemic.
Now what
Shake Shack has noted improving trends as state economies reopened in May and June. However, the company's stores are located predominantly in heavily populated metro areas, especially in the northeastern part of the country.
Inflation Is Biting Into Shake Shack's Earnings
Shake Shack (NYSE: SHAK) recently served up mixed fourth-quarter earnings results for investors. Revenue has finally eclipsed pre-pandemic levels as comparable-store sales rose 2% compared to 2019. Shake Shack got help from rising prices and popular sandwich and drink launches.
Shake Shack's Charts Are Improving But Still Shaky
We last reviewed the charts of Shake Shack on January 11 and told Real Money readers that "I am not convinced that I should chase SHAK here, but I will consider buying a pullback." The share price of SHAK weakened into late January and then bounced only to suffer a more recent pullback.
Shake Shack Stock Falls on Weaker Sales Outlook. The Chain Blames Omicron
Shake Shack offered a weaker-than-expected sales outlook for the current quarter, citing volatility from the Omicron variant.
