Fast-food chain Shake Shack (NYSE:SHAK) will be announcing earnings results tomorrow morning. Here’s what to expect.
Last quarter Shake Shack reported revenues of $276.2 million, up 21.2% year on year, in line with analyst expectations. It was an impressive quarter for the company, with an solid beat of analysts’ earnings estimates.
Is Shake Shack buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Shake Shack’s revenue to grow 17.5% year on year to $280.2 million, in line with the 17.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates three times over the last two years.
Looking at Shake Shack’s peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Chipotle delivered top-line growth of 15.4% year on year, beating analyst estimates by 1.1% and McDonald’s reported revenues up 8.1% year on year, missing analyst estimates by 0.7%. Chipotle traded up 2.1% on the results, and McDonald’s was down 1.7%.
Read our full analysis of Chipotle’s results here and McDonald’s’s results here.
There has been positive sentiment among investors in the restaurants segment, with the stocks up on average 3.5% over the last month. Shake Shack is up 19.1% during the same time, and is heading into the earnings with analyst price target of $76.8, compared to share price of $77.69.
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