Fast-food chain Shake Shack (NYSE: SHAK) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Shake Shack missed analysts’ revenue expectations last quarter, reporting revenues of $366.7 million, up 14.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
Is Shake Shack a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Shake Shack’s revenue to grow 16.8% year on year, improving from the 12.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Shake Shack has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Shake Shack’s peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 9.3%, meeting analysts’ expectations, and Wingstop reported revenues up 6.4%, falling short of estimates by 2.4%. Chipotle traded up 12.5% following the results while Wingstop’s stock price was unchanged.
Read our full analysis of Chipotle’s results here and Wingstop’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 2.4% on average over the last month. Shake Shack is up 19.5% during the same time and is heading into earnings with an average analyst price target of $78.35 (compared to the current share price of $64.75).
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