Investors savor Shake Shack stock on fatter-than-expected profit
By Steve Gelsi
Burger chain swings to a profit, fortified by 20% revenue jump
Shake Shack Inc.'s stock was rallying by more than 19% on Thursday after the burger chain swung to a fourth-quarter profit and beat analyst estimates.
Shake Shack's stock (SHAK) jumped by $15.12 to $93.19, its highest level since 2021.
The New York-based fast-food chain said it earned $6.77 million, or 15 cents a share in the fourth quarter. In the year-ago period, it lost $7.76 million, or 20 cents a share.
Adjusted profit of a 2 cents a share beat the FacSet consensus estimate of a penny a share.
Fourth-quarter revenue increased by about 20% to $286.2 million from $238.5 million, and beat the analyst estimate of $280.2 million. Traffic also rose 1.4%, reversing declines.
During the quarter, the company opened 15 new Shake Shacks in the U.S. plus nine licensed Shacks in Mexico, Thailand and other locations.
William Blair analyst Sharon Zackfia reiterated an outperform rating on Shake Shack and said the company's earnings beat was driven by favorable labor and commodity conditions.
Looking ahead, Shake Shack is planning to boost advertising and sales-driving initiatives in 2024 as it focus on its supply chain and ,ongoing improvements in labor and staffing, she said.
Also read: Shake Shack launches search for new chief executive, keeps guidance for Q4
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-15-24 1108ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
After Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is GE Aerospace Stock a Buy, a Sell, or Fairly Valued?
-
3 Good Stocks to Buy with Your Tax Refund in 2024 (Or with Any Extra Money)
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track