Core Insights - Shake Shack Inc. (SHAK) is set to report its second-quarter fiscal 2025 results on July 31, with expectations of strong earnings growth and revenue increase compared to the previous year [1][9]. Estimate Revisions - The Zacks Consensus Estimate for fiscal Q2 earnings per share (EPS) is 37 cents, reflecting a 37% increase from 27 cents in the same quarter last year [2]. - Revenue expectations are pegged at $353.8 million, indicating an 11.8% rise from the prior year's figure [2][4]. Factors Influencing Quarterly Results - The company's performance is anticipated to benefit from strategic growth initiatives, including culinary innovation, restaurant efficiency, and enhanced digital and drive-thru capabilities [3]. - New unit development and licensing expansion are expected to contribute positively to system-wide sales [4]. - A robust innovation pipeline, including the Summer Barbecue LTO platform and the Dubai Chocolate Pistachio Shake, is likely to drive customer engagement [5]. Margin Expectations - The fiscal second-quarter restaurant-level margin is projected to be between 23% and 23.5%, representing a year-over-year expansion of 100-150 basis points due to effective cost management [6]. Challenges - Traffic softness in urban markets such as New York City and Los Angeles, along with weather-related disruptions, may have negatively impacted same-Shack sales early in the quarter [7]. - Increased marketing and general & administrative expenses related to digital initiatives, along with inflation in food and paper costs, could pressure margins [7]. Earnings Prediction Model - The current model indicates that Shake Shack may not achieve an earnings beat this quarter, as it has an Earnings ESP of -3.79% and a Zacks Rank of 3 [8][10].

Danny Meyer made a name for himself running upscale NYC restaurants, but it was a hot dog stand he opened in 2001 to raise funds for a public park that led to Shake Shack. (Photo: Todd Williamson via Getty Images for Airbnb)https://t.co/nLzGsxBQ61 https://t.co/f4LXdQigu7 ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1][2]. Company Analysis: Shake Shack (SHAK) - Shake Shack currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance when combined with a Style Score of A or B [4]. - Over the past week, SHAK shares increased by 2.51%, while the Zacks Retail - Restaurants industry rose by 2.58% [6]. - In a longer timeframe, SHAK shares have appreciated by 68.29% over the past quarter and 65.84% over the last year, significantly outperforming the S&P 500, which increased by 17.01% and 13.4% respectively [7]. - The average 20-day trading volume for SHAK is 1,092,164 shares, indicating a bullish trend when combined with rising stock prices [8]. Earnings Outlook - In the last two months, four earnings estimates for SHAK have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.33 to $1.34 [10]. - For the next fiscal year, four estimates have also moved higher without any downward revisions [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, Shake Shack is positioned as a promising investment opportunity with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Shake Shack (SHAK) - Shake Shack currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [2][3] - The stock has shown significant price performance, with a 7.52% increase over the past week and a 9.3% increase over the past month, outperforming the Zacks Retail - Restaurants industry [5] - Over the last quarter, Shake Shack shares have risen 64.38%, and 57.22% over the past year, significantly outperforming the S&P 500, which increased by 7.91% and 13.53% respectively [6] Trading Volume - The average 20-day trading volume for Shake Shack is 1,223,675 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 11 earnings estimates for Shake Shack have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $1.26 to $1.34 [9] - For the next fiscal year, 12 estimates have moved upwards with no downward revisions, indicating a positive earnings outlook [9] Conclusion - Given the strong momentum indicators and positive earnings revisions, Shake Shack is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]

Group 1 - Groupon is one of 209 individual stocks in the Retail-Wholesale sector, which is currently ranked 11 in the Zacks Sector Rank [2] - Groupon has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Groupon's full-year earnings has increased by 269.6% in the past quarter, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Groupon's stock has increased by approximately 204%, significantly outperforming the Retail-Wholesale sector's average return of 1.4% [4] - Another outperforming stock in the Retail-Wholesale sector is Shake Shack, which has returned 4.4% year-to-date [4] - Groupon belongs to the Internet - Commerce industry, which includes 38 companies and is currently ranked 96 in the Zacks Industry Rank, with an average gain of 1.8% this year [5] Group 3 - Shake Shack is part of the Retail - Restaurants industry, which consists of 39 stocks and is ranked 150, with a year-to-date decline of -0.4% [6] - Both Groupon and Shake Shack are showing solid performance, making them noteworthy for investors interested in Retail-Wholesale stocks [6]

Industry Overview - The restaurant industry has faced disappointment over the past three months, with industry stocks collectively slipping 2%, while the S&P 500 advanced 5.5% [1] - High costs and sluggish foot traffic continue to pressure margins and momentum within the industry [1] Traffic and Pricing Challenges - A rapid increase in menu prices is the primary reason behind the erosion of customer traffic, leading to challenges in maintaining customer counts as consumers express frustration with rising prices [2] Standout Performers - Despite the overall industry decline, Cracker Barrel Old Country Store, Inc. (CBRL) has increased by 46.2%, Shake Shack Inc. (SHAK) by 41.7%, and Wingstop Inc. (WING) by 62.6% over the same period, driven by brand loyalty, strategic innovation, and investor optimism [3] Company-Specific Insights Cracker Barrel - Cracker Barrel is benefiting from menu innovation, digital initiatives, and strategic remodels, with a 1% increase in comparable-store restaurant sales in the fiscal third quarter, marking the fourth consecutive quarter of positive growth [8] - Earnings estimates for fiscal 2025 and 2026 have risen by 9.9% and 8.4% to $3.10 and $3.48 per share, respectively, indicating strong momentum [9] Shake Shack - Shake Shack's growth is driven by enhanced operations, menu innovation, and store openings, with plans to open 45-50 company-operated Shacks this year [11] - Earnings estimates for 2025 and 2026 have been revised upward by 6.3% and 9.6% to $1.34 and $1.71 per share, respectively [12] Wingstop - Wingstop is experiencing growth from expansion efforts and a new kitchen operating platform, with international expansion becoming a significant growth driver [14] - Earnings estimates for 2025 and 2026 have seen upward revisions of 6.8% and 5% to $3.90 and $5.03 per share, respectively [16] Summary of Opportunities - Cracker Barrel, Shake Shack, and Wingstop are demonstrating strong brand execution and strategic innovation, trading above their 50-day moving averages, indicating solid technical strength [17] - Rising earnings estimates and clear growth strategies position these stocks as compelling opportunities despite a challenging macroeconomic backdrop [18]

Core Viewpoint - Shake Shack (SHAK) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling actions, which in turn affects stock prices [4]. Shake Shack's Earnings Outlook - The recent upgrade for Shake Shack reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Analysts have raised their earnings estimates for Shake Shack, with the Zacks Consensus Estimate increasing by 3.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Shake Shack's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Shake Shack (SHAK) FY Conference Summary Company Overview - Shake Shack is a fast-casual restaurant chain known for its burgers, hot dogs, and shakes. The company is focusing on strategies to enhance same-store sales, improve margins, and accelerate unit growth in 2025 and beyond [1][4]. Key Points Long-Term Financial Outlook - The company aims to grow EBITDA by low to high teens, supported by revenue and unit growth in the low teens and annual restaurant margin expansion of 50 basis points in 2026 and 2027 [4][17]. - Shake Shack's pipeline for new restaurant openings is described as the strongest in its history, with a target of 45 to 50 new openings in 2025, up from a previous cap of 40 [6][8]. Unit Growth and Development - The company has identified underinvestment in its development team as a barrier to growth and has made significant investments to enhance its capabilities [7]. - The pipeline for future openings is oversubscribed, indicating strong demand and confidence in continued growth [9][10]. Culinary Innovation and Marketing Strategy - Shake Shack is focusing on culinary innovation to drive traffic, with plans for a structured approach to limited-time offers (LTOs) and a new marketing strategy to articulate the brand's value proposition [12][14]. - The company has hired a chief communications officer to enhance brand messaging and consumer engagement [13]. Sales Performance and Traffic Drivers - The company reported low single-digit same-store sales growth, with April showing a decline of 1%. The expectation is for May and June to average between 2% to 5% growth [19]. - Factors affecting sales include weather, operational challenges, and geopolitical issues, which have impacted traffic negatively [21][22]. Margin Expansion - Shake Shack is targeting a margin of 22.5% for the year, representing a 110 basis point year-over-year expansion and a total of 500 basis points improvement since 2022 [47]. - The company has implemented a new labor model that has contributed 80 basis points to margin improvement, focusing on optimizing labor based on menu item requirements [52][54]. Supply Chain Improvements - The supply chain has been restructured to enhance efficiency and reduce costs, with a focus on building a competitive supplier network [64][65]. - The improvements in supply chain management are expected to contribute to long-term margin expansion, although not included in the 2025 guidance [67][68]. Digital Engagement and Loyalty Programs - Shake Shack is investing in its app ecosystem to drive customer engagement and frequency, with plans for a more targeted loyalty program [33][35]. - The company has seen positive early results from promotional offers through its app, indicating a strong opportunity for growth in digital channels [34]. Combo Meals and Customer Experience - The rollout of combo meals across drive-thrus has been completed, aimed at improving order speed and customer satisfaction [41][42]. - The new combo menu has led to increased sales of high-margin items, contributing positively to the overall mix [45]. Performance Management - A new scorecard system has been implemented to track key performance indicators (KPIs) across the organization, enhancing accountability and operational efficiency [59][60]. Conclusion - Shake Shack is positioned for significant growth through strategic investments in unit expansion, culinary innovation, and enhanced marketing efforts. The focus on operational efficiency and supply chain improvements is expected to drive margin expansion and overall financial performance in the coming years [17][57].

Summary of Shake Shack Conference Call Company Overview - Shake Shack is a leader in the fast casual premium burger segment, known for generating good returns on capital and having significant growth potential [1][2] Key Insights and Arguments - **Management Changes and Strategy**: The management team has been restructured to align with the company's growth ambitions, aiming to expand from 300 to 1,500 locations. The focus is on identifying opportunities across all business facets, including operations, supply chain, and brand marketing [5][6][7] - **Growth Targets**: The company has reiterated its guidance for revenue growth in the low teens percentage and aims to expand restaurant margins by 50 basis points annually. Adjusted EBITDA is expected to grow in the low to high teens percentage [3][16] - **Cost Management**: Shake Shack has successfully reduced construction costs by 10% despite inflationary pressures, while maintaining average unit volumes (AUVs) and improving margins [9][10] - **Market Expansion**: The company is exploring various formats, including drive-thrus, to penetrate new markets and optimize its real estate strategy. There is a focus on both existing and untapped markets across the U.S. [10][11][12] - **Brand Recognition**: Shake Shack benefits from strong brand recognition, even in markets where it does not currently operate. The brand is perceived as a destination rather than just another fast food option [12][13] Financial Performance - **Consumer Trends**: The company experienced a challenging start to the year, with a 3.6% comparable sales growth driven by 6% pricing. However, there are concerns about the sustainability of this model in a non-inflationary environment [23][24] - **Operational Improvements**: Despite a slight decline in sales in April, the company has made significant operational improvements, leading to margin accretion even with lower pricing [27][28] - **Promotional Strategy**: Shake Shack's promotional strategies are designed to be margin accretive, focusing on driving traffic without diluting margins. The company runs promotions that encourage higher spending per visit [44][48][49] Marketing and Innovation - **Culinary Innovation**: The company is committed to enhancing its culinary offerings and has established a robust pipeline for new products. This includes a focus on consumer testing and feedback to drive innovation [30][31][32] - **Marketing Strategy**: Shake Shack is developing a guest-centric marketing strategy to better understand and engage its target audience. The goal is to differentiate the brand through effective communication and innovative culinary offerings [55][56][59] Supply Chain and Operations - **Supply Chain Optimization**: The company is focusing on improving its supply chain efficiency and redundancy as it scales. This includes leveraging existing supplier relationships while exploring new opportunities [64][65][66] - **Free Cash Flow**: Shake Shack has generated positive free cash flow for the first time as a public company, which will be reinvested into new restaurant development to support growth [67][68] Additional Insights - **Consumer Experience**: Shake Shack aims to create a unique dining experience that encourages repeat visits, distinguishing itself from competitors in the fast food industry [12][47] - **Long-term Vision**: The company's mission is to expand its fine casual experience to more communities, emphasizing the importance of brand loyalty and customer engagement [14][61]

Shake Shack (SHAK) FY 2025 Annual General Meeting June 04, 2025 09:00 AM ET Speaker0 Thank you, and good morning, everyone. I'm excited to be here and even more excited about what lies ahead for Shake Shack. It's hard to believe that I just celebrated my anniversary of as the CEO of this great company, and I look forward to working with our amazing team members to realize our aspirational goals. We greatly appreciate your interest in Shake Shack and for taking the time to join us today. I'd like to start by ...