Fast-food chain Shake Shack (NYSE:SHAK) will be reporting earnings this Thursday morning. Here’s what to look for.
Shake Shack met analysts’ revenue expectations last quarter, reporting revenues of $400.5 million, up 21.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.
Is Shake Shack a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Shake Shack’s revenue to grow 15.9% year on year, improving from the 10.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shake Shack has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Shake Shack’s peers in the modern fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 0.5%, and Portillo's reported revenues up 3.5%, in line with consensus estimates. Chipotle traded up 3% following the results.
Read our full analysis of Chipotle’s results here and Portillo’s results here.
Investors in the modern fast food segment have had steady hands going into earnings, with share prices flat over the last month. Shake Shack is up 4.7% during the same time and is heading into earnings with an average analyst price target of $115.04 (compared to the current share price of $96.71).
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