Company Performance - Shake Shack reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.16 per share, and showing a slight increase from $0.13 per share a year ago, resulting in an earnings surprise of -12.50% [1] - The company posted revenues of $320.9 million for the quarter ended March 2025, which was 2.09% below the Zacks Consensus Estimate, but an increase from $290.5 million year-over-year [2] - Over the last four quarters, Shake Shack has surpassed consensus EPS estimates two times and topped revenue estimates two times [2] Stock Performance - Shake Shack shares have declined approximately 32.4% since the beginning of the year, contrasting with the S&P 500's decline of -5.3% [3] - The current Zacks Rank for Shake Shack is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $355.99 million, and for the current fiscal year, it is $1.26 on revenues of $1.46 billion [7] - The outlook for the Retail - Restaurants industry, to which Shake Shack belongs, is currently in the bottom 19% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew by 10.5% year over year to $320.9 million, marking the highest first quarter total revenue on record [18][19] - Restaurant level profit margin increased by 120 basis points year over year to 20.7%, the highest first quarter margin since 2019 [6][19] - Adjusted EBITDA grew by approximately 13.5% year over year to $40.7 million, representing 12.7% of total revenue [27] Business Line Data and Key Metrics Changes - Company-operated Shack sales increased by 10.4% year over year to $309.8 million, with four new Shack openings [19] - License business revenue grew by 11.1% year over year to $11.1 million, with sales increasing by 10.4% year over year to $179.6 million and seven new license Shack openings [19][14] Market Data and Key Metrics Changes - Nearly two-thirds of markets experienced same Shack sales growth, although major markets like Los Angeles and New York City faced significant weather-related challenges [20] - Traffic was down 4.6% in the quarter due to unfavorable weather and broader industry pressures, with an estimated 400 basis points of traffic pressure attributed to these factors [20][22] Company Strategy and Development Direction - The company aims to grow to at least 1,500 company-operated Shacks, with a focus on innovative thinking and operational improvements [4][5] - Strategic priorities include building a culture of leaders, improving restaurant operations, driving comp sales, and expanding the license business [8][14] - The company is committed to investing in long-term strategic capabilities and accelerating innovation across various operational areas [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds impacting transaction growth but emphasized the opportunity to improve guest experience and operational efficiency [4][6] - The company expects low single-digit same Shack sales growth for 2025, with a focus on maintaining competitive pricing and operational improvements [30][31] Other Important Information - The company plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class on record [30] - Menu pricing is expected to increase modestly, with in-Shack prices up approximately 2% year over year [30] Q&A Session Summary Question: Store margins and near-term opportunities - Management highlighted operational improvements and a new labor model as key factors driving margin expansion and confidence in future performance [36][37] Question: Drive-thru strategy and early learnings - The company reported significant improvements in ordering time and guest satisfaction from testing new digital menu boards and combo offerings in drive-thrus [42][45] Question: Q2 comp outlook and underlying assumptions - Management expects low single-digit comps for Q2, driven by new menu innovations and improved weather conditions [90][92] Question: Long-term targets and pricing assumptions - Management confirmed that operational improvements and supply chain efficiencies are expected to support margin expansion without relying heavily on price increases [63][64] Question: Innovation and LTO strategy - The company is focused on maintaining a quarterly cadence for new product innovations while ensuring operational efficiency [72][75]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew by 10.5% year over year to $320.9 million, marking the highest first quarter total revenue on record [18][19] - Restaurant level profit margin improved by 120 basis points year over year to 20.7%, the highest first quarter margin since 2019 [7][18] - Adjusted EBITDA increased by approximately 13.5% year over year to $40.7 million, representing 12.7% of total revenue [27] Business Line Data and Key Metrics Changes - In the company-operated business, Shack sales grew by 10.4% year over year to $309.8 million, with four Shack openings including two drive-throughs [19] - The licensing business saw revenue growth of 11.1% year over year to $11.1 million, with sales increasing by 10.4% year over year to $179.6 million and seven new license Shack openings [19][15] Market Data and Key Metrics Changes - Nearly two-thirds of markets experienced same Shack sales growth, although major markets like Los Angeles and New York City faced significant weather-related challenges [20][22] - Traffic was down 4.6% in the quarter due to unfavorable weather and broader industry pressures, with an estimated 400 basis points of traffic pressure attributed to these factors [20][21] Company Strategy and Development Direction - The company aims to grow to at least 1,500 company-operated Shacks, with a focus on innovative thinking and operational improvements [5][6] - Strategic priorities include building a culture of leaders, improving restaurant operations, driving comp sales, and expanding the licensing business [9][15] - The company is committed to investing in long-term strategic capabilities and accelerating innovation across various operational areas [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro headwinds impacting transaction growth but emphasized the opportunity to improve guest experience and reduce costs [5][6] - The company expects to achieve low single-digit same Shack sales growth for 2025, with a focus on menu innovation and culinary strategy to drive traffic [31][54] Other Important Information - The company plans to open 45 to 50 company-operated Shacks in 2025, marking the largest class on record [31] - The balance sheet remains solid with $312.9 million in cash and cash equivalents at the end of the quarter [27] Q&A Session Summary Question: Can you elaborate on the near-term opportunities for margin expansion? - Management highlighted operational improvements and a new labor model as key factors driving productivity and margin growth [37][38] Question: What are the early learnings from the drive-through strategy tests? - Management reported significant improvements in ordering time and guest satisfaction from the new digital menu boards and combo offerings [43][45] Question: What are the underlying assumptions for the Q2 comp outlook? - Management expects low single-digit comps based on current macro trends and new menu innovations, including a summer barbecue menu [93] Question: How does the company plan to balance menu innovation with operational efficiency? - Management emphasized the importance of ensuring that new innovations do not disrupt operational efficiency and are manageable for staff [58][60] Question: What is the company's strategy for driving mix without increasing prices? - Management plans to introduce premium items and combos to enhance mix while minimizing price increases on core items [80][82]

Financial Performance - Total revenue for Q1 2025 was $320.9 million, representing a 10.5% increase compared to 2024, with Shack sales of $309.8 million and licensing revenue of $11.1 million[5]. - System-wide sales reached $489.4 million, up 10.4% from 2024, while same-Shack sales increased by 0.2%[5]. - Net income attributable to Shake Shack Inc. was $4.2 million, or earnings of $0.10 per diluted share, compared to $2.0 million in the same period of 2024[5][17]. - Adjusted EBITDA for the quarter was $40.7 million, reflecting a 13.5% increase from 2024[5]. - Restaurant-level profit was $64.2 million, accounting for 20.7% of Shack sales[5]. - Net income for the thirteen weeks ended March 26, 2025, was $4,513,000, compared to $2,214,000 for the same period in 2024, representing a 103% increase[19]. - Total revenue increased to $320,898,000 in Q1 2025 from $290,504,000 in Q1 2024, reflecting a growth of 10.5%[26]. - Shack sales reached $309,838,000, up from $280,552,000, indicating a 10.4% increase year-over-year[26]. - Restaurant-level profit for the period was $64,240,000, compared to $54,746,000 in the prior year, marking an increase of 17.3%[26]. - Adjusted EBITDA for Q1 2025 was $40,745,000, up from $35,885,000 in Q1 2024, which is a 13.5% increase[32]. - Adjusted EBITDA margin improved to 12.7% in Q1 2025 from 12.4% in Q1 2024[32]. - Adjusted pro forma net income for the same period was $6,398,000, up from $5,623,000, reflecting a 13.8% increase year-over-year[39]. - Earnings per share of Class A common stock—diluted increased to $0.10 for the thirteen weeks ended March 26, 2025, compared to $0.05 for the same period in 2024, a 100% increase[39]. - Adjusted pro forma earnings per fully exchanged share—diluted rose to $0.14, up from $0.13, indicating an increase of 7.7%[39]. Operational Highlights - The company opened four new Company-operated Shacks, including two drive-thrus, and seven new licensed Shacks during the quarter[5]. - The company incurred $2,057,000 in impairments and losses on asset disposals during the quarter, compared to $526,000 in the same period last year[26]. - The restaurant-level profit margin increased to 20.7% from 19.5% year-over-year, indicating improved operational efficiency[26]. - The company incurred an impairment charge and Shack closures amounting to $1,653,000 during the fiscal period[39]. - Legal settlements accounted for expenses of $983,000 in the current fiscal period[39]. Cash and Assets - Cash and cash equivalents as of March 26, 2025, were $312.9 million, a slight decrease from $320.7 million at the end of 2024[15]. - Cash provided by operating activities was $31,222,000, slightly up from $30,665,000 in the previous year[19]. - Cash and cash equivalents at the end of the period were $312,921,000, compared to $260,203,000 at the end of Q1 2024, showing a 20.2% increase[19]. - Total assets increased to $1.727 billion from $1.697 billion at the end of 2024[15]. - Total liabilities rose to $1.230 billion, up from $1.203 billion at the end of 2024[15]. Tax and Shares - The effective tax rate for the thirteen weeks ended March 26, 2025, was assumed at 21.3%[41]. - Non-GAAP adjustments for the period had a per share impact of $0.04, compared to $0.08 in the previous year[42]. - Weighted-average shares of Class A common stock outstanding—diluted increased to 41,864,000 from 41,259,000, a growth of 1.5%[39]. - The tax impact of adjustments was a reduction of $993,000 for the thirteen weeks ended March 26, 2025[39].

Group 1 - Shake Shack Inc (NYSE:SHAK) stock has increased by 2% to $89.89 following an upgrade from Loop Capital to "buy" from "hold," with a price target set at $127, indicating a potential upside of 40% due to attractive valuation and sales growth [1] - The majority of firms are currently bearish on Shake Shack, with 12 out of 20 firms rating it as "hold" or worse, and short interest has risen by 7% over the past month, accounting for 10.7% of the stock's available float [2] - Shake Shack's stock has declined over 30% year-to-date, but it may experience its first daily gain in three sessions, testing a ceiling at the 20-day moving average after previously falling below this trendline [3] Group 2 - The stock's 50-day call/put volume ratio of 1.49 ranks in the 82nd percentile of annual readings, indicating that options traders are significantly more bullish than usual [4]

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Key Takeaways Shake Shack Inc. (SHAK) has delivered an impressive 146.6% surge over the past five years. However, the stock has hit a rough patch recently, tumbling 30.6% in the past month, significantly underperforming the retail restaurant industry's 4.8% decline and the S&P 500's 7.5% drop. The company is poised for robust earnings growth, with projections indicating a 40.2% jump in fiscal 2025, followed by a 22.9% increase in 2026. Meanwhile, revenue growth has been strong, with forecasts suggesting a 1 ...

Shake Shack (SHAK) has been on a downward spiral lately with significant selling pressure. After declining 24.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a sto ...

I am an Equity Analyst and Accountant specializing in restaurant stocks, with a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining. We employ advanced analytical models and specialized valuation techniq ...

Shake Shack Inc. (SHAK) posted mixed fourth-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. However, the top and bottom lines increased on a year-over-year basis.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The quarter’s performance improved year over year attributable to growing sales volume and enhanced operations. Furthermore, increased company-operated and licensed store openings on a global scale, accompanied ...