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Thursday, May 12, 2016

=Shake Shack (SHAK) reported earnings Thur 12 May 2016 (a/h)





Shake Shack beats by $0.03, beats on revs; guides FY16 revs above consensus; Beats Same Shak Sales expectations and raises full year gudiance :
  • Reports Q1 (Mar) earnings of $0.08 per share, $0.03 better than the Capital IQ Consensus of $0.05; revenues rose 43.4% year/year to $54.2 mln vs the $52.16 mln Capital IQ Consensus.
    • Same-Shack sales increased 9.9% (Guidance 2.5-3.0%)
    • Shak-level operating profit 28.2% compared to 25.7%
    • Average weekly sales for domestic company-operated Shacks were $90,000 for the first quarter of 2016 compared to $89,000 for the same quarter last year, a 1.1% increase, primarily due to robust traffic growth, menu price increases and solid performance across the existing Shack base, including in new markets.
    • Food and paper costs as % of revenues 28.8% compared to 30.5% in prior year.
    • Labor and related expenses as % of revenue 25.2% compared to 25.2% in prior year. 
  • Co issues upside guidance for FY16, sees FY16 revs of $245-249 mln (Prior $237-242 mln) vs. $242.39 mln Capital IQ Consensus Estimate. Same-Shack
    • Same-shak Sales growth between 4% and 5% (vs. between 2.5% and 3.0%).
    • 16 (vs. 13) total new domestic company-operated Shacks to be opened in 2016.
    • Seven licensed Shacks to be opened under the Company's current license agreements in the U.K., Middle East and Japan.
    • Approximately 75 to 100 basis points (vs. 100 to 150 basis points) of deleverage in labor and related expenses as a percentage of Shack sales, on a year-over-year basis.

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