Shake Shack (SHAK) to Report Q4 Earnings: What's in Store?

Core Viewpoint - Shake Shack Inc. is set to report its fourth-quarter 2023 financial results on February 15, with expectations of breakeven earnings and a revenue increase of 17.3% year-over-year to $279.8 million [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for fourth-quarter 2023 earnings is breakeven, compared to an adjusted loss per share of 6 cents in the same quarter last year [2]. - Revenue expectations for the quarter are pegged at $279.8 million, indicating a 17.3% growth from the prior-year actual figure [2]. Group 2: Factors Influencing Performance - Shake Shack's performance is anticipated to benefit from strong same-store sales, new store openings, and digital investments aimed at enhancing the customer experience [3]. - The company expects Shack sales to rise by 16.5% year-over-year to $267.9 million, with same-store sales projected to increase by 3.5% [3]. Group 3: Cost Pressures - High costs, particularly for premium ingredients, are likely to negatively impact the company's bottom line, with food and paper costs, labor expenses, and other operating expenses projected to increase by 6%, 3.2%, and 27.6% respectively from the previous year [4]. Group 4: Earnings Prediction Model - The Zacks model indicates that Shake Shack is not likely to beat earnings estimates this quarter, as it has an Earnings ESP of -207.04% and a Zacks Rank of 3 [5].