Fast-food chain Shake Shack (NYSE:SHAK) will be announcing earnings results tomorrow before market hours. Here’s what investors should know.
Shake Shack met analysts’ revenue expectations last quarter, reporting revenues of $316.9 million, up 14.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS and same-store sales estimates.
Is Shake Shack a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Shake Shack’s revenue to grow 14.9% year on year to $329 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Shake Shack’s peers in the restaurants segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 13.1%, meeting analysts’ expectations, and Wingstop reported revenues up 27.4%, falling short of estimates by 1.9%. Chipotle traded down 2.6% following the results.
Read our full analysis of Chipotle’s results here and Wingstop’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 8.1% on average over the last month. Shake Shack is down 3.7% during the same time and is heading into earnings with an average analyst price target of $136.59 (compared to the current share price of $116.97).
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