The market expects Shake Shack (SHAK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 30, 2024, might help the stock move higher if these key numbers ...

It’s really no exaggeration to say that Shake Shack (NYSE: SHAK ) is riding the wave of fast-food inflation. That seems like a cliché when looking at the fast-casual segment, but theI'm an Equity Analyst and Accountant specializing in restaurant stocks, with a solid background in Business Administration and Accounting. I also have an MBA in Forensic Accounting and Controllership.As the founder of Goulart's Restaurant Stocks, I lead a company that excels at analyzing restaurant stocks in the US market. Our a ...

Shares of Shake Shack Inc. (SHAK) have increased 48.4% year to date compared with the industry’s 4.8% growth. The company is benefiting from menu innovation, digital Initiatives and unit expansion efforts. Also, focus on cost-saving measures bodes well. However, inflationary pressures are a concern.Growth Drivers for SHAK StockShake Shack’s premium product offering, featuring high-quality ingredients and innovative menu items, has been a cornerstone of its success. Despite a market shift toward value-orient ...

Shake Shack will shutter six underperforming California locations — the latest fast food chain to close restaurants after the state enacted its controversial $20 minimum wage. The burger chain, which will close nine Shake Shacks overall, said the move was a result of a periodic evaluation of its portfolio of company-operated units, according to a filing with the Securities and Exchange Commission on Tuesday.“These Shacks are not projected to provide acceptable returns in the foreseeable future,” the filing ...

SeanPavonePhoto/iStock Editorial via Getty Images Despite the threat of a looming recession, 2024 has been a successful year in the stock market for many fast-casual restaurant brands. Shake Shack (NYSE:SHAK), the burger concept invented by Michelin-lauded restauranteur and chef Danny Meyer, is no exception. Year to date, Shake Shack stock has rallied more than 40%, energized by new leadership as the company brought on the former CEO of Papa John's Pizza to lead the company. Data by YCharts Shake Shack ...

Shake Shack Inc (NYSE:SHAK) stock is down 3.1% to trade at $104 at last check, after Piper Sandler downgraded the fast food chain to "neutral" from "overweight," and cut its price objective to $114 from $121. Shares are pulling back from their highest level since May, but still sport a 40.2% year-to-date lead, with familiar support at the $102 region ready to contain any additional losses.What's more, the equity's recent peak comes amid historically low implied volatility (IV), which has been a bullish comb ...

Shake Shack may finally be positioning itself for stronger share price returns.On Aug. 1, popular burger chain Shake Shack (SHAK -1.94%) reported financial results for its fiscal second quarter, showing revenue growth of 16%. That was almost as good as the 18% revenue growth Chipotle Mexican Grill (CMG -2.78%) reported in its second quarter.This is normal. The two chains have grown at a similar pace over the last five years with Shake Shack slightly outpacing Chipotle. But if you invested $1,000 in Chipotle ...

Investment Overview - Shake Shack Inc. (NYSE: SHAK) is rated as a buy due to a solid growth outlook, with expectations of mid-teen percentage growth over the next two years, supported by strong same-store sales and new store openings [1] - Projected adjusted EBITDA is approximately $250 million by FY26, driven by an expanding adjusted EBITDA margin [1][8] Business Description - Shake Shack operates a fast food business selling burgers, fries, and milkshakes, utilizing both self-operated and licensed store models [2] - As of 2Q24, the company has 317 self-operated units and 247 franchised units, with total revenue reported at $316 million, reflecting a 16.4% year-over-year growth [2] - Restaurant level margins (RLM) improved to 22%, with a consolidated EBIT margin of 4.2%, marking significant margin expansions compared to previous quarters [2] Growth Performance - In 2Q24, Shake Shack achieved same-store sales growth (SSSG) of 4%, with a notable sequential improvement in traffic growth from -2.1% in 1Q24 to 0.8% [3] - Management indicated that SSSG strength continued into 3Q24 at 4.1%, driven by positive traffic growth across all regions [3] - The company plans to increase marketing spend to enhance brand awareness, currently spending about 1% of revenue compared to peers' 3-6% [3] Margin Expansion - The outlook for RLM is positive, with expectations of decreasing labor costs due to easing wage inflation and a new labor deployment model [4] - Food and paper cost inflation is projected to decline from 1.5% in 1Q24 to 0.5% in 2Q24, contributing to margin expansion [4] - Fixed cost leverage from mid-teen revenue growth is expected to further enhance profit margins [4] Financial Projections - Revenue is anticipated to grow at a mid-teen percentage for the next two years, supported by same-store sales and new store openings [8] - Adjusted EBITDA is expected to reach approximately $250 million in FY26, with an adjusted EBITDA margin projected at 15% [8] - The stock is expected to trade at 23x forward EBITDA, reflecting a stable valuation compared to peers [8] Conclusion - The overall growth outlook for Shake Shack remains solid, with 2Q24 performance demonstrating resilience in a challenging macro environment [10] - The combination of mid-teen revenue growth, new store openings, and expanding profit margins positions the company favorably for future performance [10]

Serve Robotics (NASDAQ:SERV) stock is on the rise Wednesday after the autonomous delivery robots company announced a new collaboration with Shake Shack (NYSE:SHAK).With this agreement Serve Robotics’ autonomous delivery robots will be used to deliver food from Shake Shack to customers. Also included in this partnership is Uber (NYSE:UBER), which will handle the orders through its Uber Eats platform.It’s worth highlighting that this delivery partnership is only available for residents ordering from Shake Sha ...

U.S. markets were relatively calm Monday as Wall Street entered the home stretch of second-quarter earnings season after a volatile week of trading fueled by recession fears. Trading activity often picks up during the month or so every quarter in which America's largest companies report results. But this past month, especially the last two weeks, has been characterized by abnormal swings in the stock market. Volatility spiked last week to its highest since the onset of Covid-19 after a soft jobs report and ...