We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shake Shack (SHAK) Stock Down Despite Q1 Earnings Beat
Read MoreHide Full Article
Shake Shack Inc. (SHAK - Free Report) reported first-quarter fiscal 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Despite reporting earnings and revenues beat, the company’s shares have declined 2% in the after-hours trading session on May 5. Investor sentiments were hurt as the company’s second-quarter guidance fell short of the street estimates.
Earnings & Revenue Details
During the first quarter, adjusted loss was 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 22 cents. In the prior-year quarter, adjusted earnings came in at 4 cents. Quarterly revenues of $203.4 million beat the Zacks Consensus Estimate of $201 million. The top line improved 31% on a year-over-year basis.
Shack sales during the reported quarter rose 30.6% to $196.8 million, while licensed revenues surged 43% to $6.6 million year over year. Shack system-wide sales in first-quarter fiscal 2022 climbed 35.6% year over year to $309.5 million.
Shake Shack, Inc. Price, Consensus and EPS Surprise
Same-Shack sales rose 10.3% in first-quarter 2022, primarily driven by urban same-Shack sales growth of 19% over the last year. The company anticipates the trend to improve further in second-quarter 2022.
During the quarter under discussion, total digital sales, including orders placed on the Shake Shack app, website as well as third-party delivery platforms, accounted for nearly 43% of Shack sales.
During the first quarter of fiscal 2022, its average weekly sales amounted to $68,000, down from $742,000 in fourth-quarter 2021.
Operating Highlights
During the first quarter, the company’s operating loss totaled $14.9 million, compared with operating loss of $10 million in the prior-year quarter. Shack-level operating profit margin came in at 15.2%, compared with 15% in the prior-year quarter.
Total expenses (as a percentage of company revenues) increased 80 basis points (bps) year over year. Food and paper costs (as a percentage of company revenues) increased 80 basis points (bps) year over year. Labor and related expenses declined 10 bps year over year to 30.7%.
Adjusted EBITDA for the reported quarter amounted to $9.6 million compared with $7.1 million in the year-ago quarter. Adjusted EBITDA margin expanded 10 bps to 4.7%.
Balance Sheet
As of Mar 30, 2022, cash and cash equivalent totaled $279.3 million compared with $302.4 million as of Dec 29, 2021. Total long-term debt at the end of the quarter increased to $243.8 million, compared with $243.5 million at the end of Dec 29, 2021.
Q2 & 2022 Outlook
For second-quarter 2022, the company expects total revenues between $233.8 million and $239.5 million. The Zacks Consensus Estimate for revenues is pegged at $246 million. Shack sales are anticipated in the range of $227 million to $232 million. The company’s second-quarter licensed revenues are expected between $6.8 million and $7.5 million.
For second-quarter 2022, its Same-Shack Sales are expected to increase in low-mid-teens digits. Meanwhile, Shack-Level operating profit is projected to be 16-18%.
For 2022, the company anticipates opening 40 shacks to 45 shacks. Depreciation expense for 2022 is expected in the range of $70 million to $75 million.
The company currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the same space are BBQ Holdings, Inc. , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
BBQ Holdings sports a Zacks Rank #1 (Strong Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 16.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 25.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.
Kura Sushi carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 23.7%, on average. Shares of the company have risen 17.3% in the past year.
The Zacks Consensus Estimate for Kura Sushi’s 2022 sales and EPS suggests growth of 111.9% and 81.9%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shake Shack (SHAK) Stock Down Despite Q1 Earnings Beat
Shake Shack Inc. (SHAK - Free Report) reported first-quarter fiscal 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Despite reporting earnings and revenues beat, the company’s shares have declined 2% in the after-hours trading session on May 5. Investor sentiments were hurt as the company’s second-quarter guidance fell short of the street estimates.
Earnings & Revenue Details
During the first quarter, adjusted loss was 19 cents per share, narrower than the Zacks Consensus Estimate of a loss of 22 cents. In the prior-year quarter, adjusted earnings came in at 4 cents. Quarterly revenues of $203.4 million beat the Zacks Consensus Estimate of $201 million. The top line improved 31% on a year-over-year basis.
Shack sales during the reported quarter rose 30.6% to $196.8 million, while licensed revenues surged 43% to $6.6 million year over year. Shack system-wide sales in first-quarter fiscal 2022 climbed 35.6% year over year to $309.5 million.
Shake Shack, Inc. Price, Consensus and EPS Surprise
Shake Shack, Inc. price-consensus-eps-surprise-chart | Shake Shack, Inc. Quote
Comps Discussion
Same-Shack sales rose 10.3% in first-quarter 2022, primarily driven by urban same-Shack sales growth of 19% over the last year. The company anticipates the trend to improve further in second-quarter 2022.
During the quarter under discussion, total digital sales, including orders placed on the Shake Shack app, website as well as third-party delivery platforms, accounted for nearly 43% of Shack sales.
During the first quarter of fiscal 2022, its average weekly sales amounted to $68,000, down from $742,000 in fourth-quarter 2021.
Operating Highlights
During the first quarter, the company’s operating loss totaled $14.9 million, compared with operating loss of $10 million in the prior-year quarter. Shack-level operating profit margin came in at 15.2%, compared with 15% in the prior-year quarter.
Total expenses (as a percentage of company revenues) increased 80 basis points (bps) year over year. Food and paper costs (as a percentage of company revenues) increased 80 basis points (bps) year over year. Labor and related expenses declined 10 bps year over year to 30.7%.
Adjusted EBITDA for the reported quarter amounted to $9.6 million compared with $7.1 million in the year-ago quarter. Adjusted EBITDA margin expanded 10 bps to 4.7%.
Balance Sheet
As of Mar 30, 2022, cash and cash equivalent totaled $279.3 million compared with $302.4 million as of Dec 29, 2021. Total long-term debt at the end of the quarter increased to $243.8 million, compared with $243.5 million at the end of Dec 29, 2021.
Q2 & 2022 Outlook
For second-quarter 2022, the company expects total revenues between $233.8 million and $239.5 million. The Zacks Consensus Estimate for revenues is pegged at $246 million. Shack sales are anticipated in the range of $227 million to $232 million. The company’s second-quarter licensed revenues are expected between $6.8 million and $7.5 million.
For second-quarter 2022, its Same-Shack Sales are expected to increase in low-mid-teens digits. Meanwhile, Shack-Level operating profit is projected to be 16-18%.
For 2022, the company anticipates opening 40 shacks to 45 shacks. Depreciation expense for 2022 is expected in the range of $70 million to $75 million.
The company currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the same space are BBQ Holdings, Inc. , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Kura Sushi USA, Inc. (KRUS - Free Report) .
BBQ Holdings sports a Zacks Rank #1 (Strong Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 16.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 25.2% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.
Kura Sushi carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 23.7%, on average. Shares of the company have risen 17.3% in the past year.
The Zacks Consensus Estimate for Kura Sushi’s 2022 sales and EPS suggests growth of 111.9% and 81.9%, respectively, from the year-ago period’s levels.