Shake Shack’s Big Guidance Sends Shares Up 8%

Share This Article
November 9, 2016 4:46pm NYSE:SHAK

Fast food chain Shake Shack Inc (NYSE:SHAK) late Wednesday offered a very positive growth forecast through next year, sending its shares soaring in late trading.

The New York-based company reported Q3 EPS of $0.15, beating out Wall Street’s view of $0.14. Revenue surged 40% from last year to $74.6 million, easily topping analysts’ $69.15 million view.

Same-store sales rose 2.9% in the third quarter of 2016, which was down significantly from 17.1% growth seen in Q3 of last year.

Looking ahead, Shake Shack boosted its full-year sales outlook to $264-265 million, up from a prior range of $253-256 million. Analysts are looking for $258.18 million in revenue for the year. The company also reaffirmed its same-store sales forecast of +4-5% growth. SHAK also expects 19 news company owned stores in 2016, and 10 net new licensed stores. Those estimates are up from a prior outlook of 18 and 7, respectively.

For 2017, the company forecast revenues of $348-352 million, which would easily beat analysts’ forecast for $334.43 million. It expects 2017 same store sales to rise 2-3%, and to open 21-22 and domestic company-operated stores and 10 new licensed stores in the fiscal period. Its operating profit margin for the year is 26.5% to 27.5%.

The company commented via press release:

“Shake Shack’s Q3 performance demonstrates the continued strength and opportunity of our brand. We delivered another quarter of solid results, with 40% growth in total revenue and a 28.8% Shack-level operating profit margin. We also hit some important milestones this quarter, including our 100th worldwide Shack opening and our first $1 million sales day in our domestic company-operated Shacks.”

Shake Shack shares surged $3.13 (+9.41%) to $36.39 in after-hours trading Wednesday. Prior to today’s report, SHAK had fallen 16% year-to-date.

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again! respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories