Restaurant chain Shake Shack's Q2 profit, sales tops estimates
Overview
Shake Shack Q2 revenue rises 12.6% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reflecting strong operational performance
Co opened 13 new company-operated Shacks, including two drive-thrus
Outlook
Company did not provide specific guidance for future quarters or full year
Result Drivers
REVENUE GROWTH - Total revenue increased 12.6% yr/yr, driven by Shack sales and licensing revenue
NEW OPENINGS - Co opened 13 new company-operated Shacks, including two drive-thrus, contributing to growth
OPERATING INCOME - Operating income more than doubled to $22.4 mln, reflecting improved profitability
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $356.50 mln | $354.10 mln (21 Analysts) |
Q2 Adjusted EPS | Beat | $0.44 | $0.38 (22 Analysts) |
Q2 EPS |
| $0.41 |
|
Q2 Adjusted Net Income |
| $19.50 mln |
|
Q2 Net Income |
| $18.50 mln |
|
Q2 Adjusted EBITDA |
| $58.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Shake Shack Inc is $139.50, about 1% below its July 30 closing price of $140.91
The stock recently traded at 89 times the next 12-month earnings vs. a P/E of 65 three months ago
Press Release: ID:nBw46nnLNa
