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 on Q2 Preliminary Sales Decline
Read MoreHide Full Article
Shake Shack Inc. (SHAK - Free Report) recently issued preliminary sales for second-quarter fiscal 2020 and provided financial updates in response to the ongoing impact of COVID-19 on business and the economy.
Preliminary Second-Quarter (Ended Jun 24) Results
Shake Shack reported preliminary total revenues of $91.8 million. In the prior-year quarter, the company had reported total revenues of $153 million. Shack sales in the second quarter were estimated to be negatively impacted by nearly $3.2 million owing to nationwide protest and resulting curfews causing temporary Shack closures and reduced operating hours.
Same-Shack sales decreased 49% year over year. The downside can be attributed to acute impact from COVID-19. Traffic in the quarter declined 60.1%. Same-Shack sales for fiscal April, May and June declined 64% and 42% and 42%, respectively.
Financial Highlights & Other Updates
As of July 6, the company had $184 million in cash and marketable securities on hand. On Jun 22, the company repaid $50 million it had previously drawn from its revolving credit facility.
The company announced enterprise-level weekly cash burn has improved to roughly $200,000 per week, which excludes temporary premium pay increase for Shack teams and new Shack capital expenditure.
Over the past few weeks digital sales have increased due rise on orders. For the week ended Jul 1, digital sales represented nearly 60% of total Shack sales compared with a peak of 84% of Shack sales for the week ended Apr 29. Shake Shack anticipates digital mix to increase gradually. The company has temporarily closed six Shacks.
Currently, 95 of 121 licensed Shacks are open. The company had opened two new licensed Shacks since the end of the first quarter both in Shanghai, China.
The company — which shares space with BJ's Restaurants, Inc. (BJRI - Free Report) , Brinker International, Inc. (EAT - Free Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) in the Zacks Retail - Restaurants industry — will discuss business performance during second-quarter earnings release, scheduled on Jul 30.
Price Performance
So far this year, share of this Zacks Rank #3 (Hold) company have fallen 16.2% compared with the industry’s decline of 8.6%. Estimates for fiscal 2020 have been revised to a loss of 45 cents from loss of 42 cents in the past 30 days. The downside reflects rapidly evolving market conditions due to the pandemic. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Bigstock
Shake Shack (SHAK) Stock Down on Q2 Preliminary Sales Decline
Shake Shack Inc. (SHAK - Free Report) recently issued preliminary sales for second-quarter fiscal 2020 and provided financial updates in response to the ongoing impact of COVID-19 on business and the economy.
Preliminary Second-Quarter (Ended Jun 24) Results
Shake Shack reported preliminary total revenues of $91.8 million. In the prior-year quarter, the company had reported total revenues of $153 million. Shack sales in the second quarter were estimated to be negatively impacted by nearly $3.2 million owing to nationwide protest and resulting curfews causing temporary Shack closures and reduced operating hours.
Same-Shack sales decreased 49% year over year. The downside can be attributed to acute impact from COVID-19. Traffic in the quarter declined 60.1%. Same-Shack sales for fiscal April, May and June declined 64% and 42% and 42%, respectively.
Financial Highlights & Other Updates
As of July 6, the company had $184 million in cash and marketable securities on hand. On Jun 22, the company repaid $50 million it had previously drawn from its revolving credit facility.
The company announced enterprise-level weekly cash burn has improved to roughly $200,000 per week, which excludes temporary premium pay increase for Shack teams and new Shack capital expenditure.
Over the past few weeks digital sales have increased due rise on orders. For the week ended Jul 1, digital sales represented nearly 60% of total Shack sales compared with a peak of 84% of Shack sales for the week ended Apr 29. Shake Shack anticipates digital mix to increase gradually. The company has temporarily closed six Shacks.
Currently, 95 of 121 licensed Shacks are open. The company had opened two new licensed Shacks since the end of the first quarter both in Shanghai, China.
The company — which shares space with BJ's Restaurants, Inc. (BJRI - Free Report) , Brinker International, Inc. (EAT - Free Report) and Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) in the Zacks Retail - Restaurants industry — will discuss business performance during second-quarter earnings release, scheduled on Jul 30.
Price Performance
So far this year, share of this Zacks Rank #3 (Hold) company have fallen 16.2% compared with the industry’s decline of 8.6%. Estimates for fiscal 2020 have been revised to a loss of 45 cents from loss of 42 cents in the past 30 days. The downside reflects rapidly evolving market conditions due to the pandemic. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>