- Shake Shack posts Q1 earnings beat, comps decline 2.5%
- In the first quarter, Shake Shack profit grew 25% to 10 cents a share as revenue climbed 42% to $76.7 million, topping consensus for 8 cents EPS and $74.7 million in sales.
- But same-store sales tumbled 2.5% as the premium burger-and-fries chain faced tough comparisons from a balmier Q1 last year that included the allure of Chick'n Shack sandwiches.
Shake Shack Inc. SHAK just released its first quarter fiscal 2017 financial results, posting earnings of 10 cents per share and revenues of $76.7 million. Currently, SHAK is a #3 (Hold) on the Zacks Rank, and is down about 7% to $30.79 per share in trading shortly after its earnings report was released.
Shake Shack:
Beat earnings estimates. The company reported earnings of 10 cents per share, surpassing the Zacks Consensus Estimate of 8 cents per share. This number excludes a penny from non-recurring items.
Beat revenue estimates. The company saw revenue figures of $76.7 million, topping our consensus estimate of $75.4 million and increasing 41.7% year-over-year.
Same-Shack sales decreased 2.5% during the quarter compared to 9.9% growth in the first quarter of 2016. The decline was due to a 3.4% decrease in guest traffic, which was offset by a combined increase in price and sales mix of 0.9%.
Looking ahead, Shake Shack expects revenues between $351 million and $355 million for fiscal 2017. Same-Shack sales growth is forecasted to be flat to prior year (vs. 2% to 3%), including roughly 1.5% to 2% of menu price increases taken at the end of December.
***
Analyst John Zolidis bumped up his rating on Shake Shack to buy from neutral with an unchanged price target of 39, as he believes " the trendy burger chain has now passed its most difficult compares from a same-Shack basis" and is opening new locations "at very robust volumes." He also pointed out that the company's comp base is only 32 stores big, though the optics of same-store sales remains important.
No comments:
Post a Comment