US Markets
Thursday, February 15th, 2024 4:07 pm EDT
Key Points
- Shake Shack’s shares surged 20% following strong fourth-quarter earnings results, reaching a new 52-week high of $95.80, and marking a more than 50% increase in the past twelve months.
- During the period, Shake Shack outperformed expectations, reporting earnings per share of 2 cents compared to the anticipated 1 cent, and revenue of $286.2 million surpassing the projected $280.3 million.
- The company experienced a notable turnaround in net income, transitioning from a loss of $8.1 million to a profit of $6.8 million year-over-year, accompanied by a 20% increase in revenue and the opening of 15 new restaurants. Additionally, Shake Shack aims for continued growth in 2024, targeting an 11% to 15% increase in total revenue and the opening of 80 new restaurants, nearly doubling its footprint compared to five years ago.
Shake Shack’s shares experienced a significant surge of 20% on Thursday morning following the release of robust fourth-quarter earnings results, propelling the stock to a new 52-week high of $95.80 and marking an impressive uptick of over 50% in the past year. The company’s performance during this period surpassed expectations, with earnings per share standing at 2 cents compared to the anticipated 1 cent, and revenue reaching $286.2 million, surpassing the projected $280.3 million. Notably, Shake Shack reported a notable turnaround in net income, recording $6.8 million in profit compared to a loss of $8.1 million in the previous year’s fourth quarter. Earnings per share also saw a substantial improvement, transitioning from a 20-cent loss to a 15-cent profit year-over-year. Adjusting for one-time items, Shake Shack reported earnings per share of 2 cents. The company additionally witnessed a remarkable 20% increase in revenue compared to the same period last year and successfully opened 15 new restaurants during the quarter. Looking ahead to 2024, Shake Shack projects a promising growth trajectory, aiming for a total revenue expansion of 11% to 15% and plans to open 80 new restaurants. This ambitious plan would nearly double the company’s footprint to nearly 600 Shacks, including both company-owned and licensed establishments, over the span of five years. CEO Randy Garutti expressed optimism and enthusiasm for the future, highlighting positive fourth-quarter traffic and attributing success to effective sales-driving strategies and ongoing margin expansion efforts. Garutti’s letter to shareholders emphasized the company’s readiness to pursue its 2024 Strategic Priorities, with a focus on sustaining strong growth and further enhancing margins.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/15/shake-shack-shak-earnings-q4-2023.html
