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Shake Shack Earnings: SHAK Stock Falls 13% on Weak 2020 Guidance

Shake Shack (NYSE:SHAK) earnings for the fast-food chain’s fourth quarter of 2019 have SHAK stock taking a beating after-hours Monday. This comes after reporting adjusted earnings per share (EPS) of 6 cents. This is better than Wall Street’s flat estimate. On the other hand, the company’s revenue of $151.44 million is below analysts’ estimates of $153.14 million.

Shake Shack Earnings: SHAK Stock Falls 13% on Weak 2020 Guidance

Source: JHENG YAO / Shutterstock.com

Now for a more thorough look at the most recent Shake Shack earnings report.

  • Adjusted EPS for the quarter is 100% better than 3 cents same period of the year prior.
  • Revenue is sitting 21.86% higher than the $124.27 million from the fourth quarter of 2019.
  • Operating income of $488,000 is a 82.82% drop year-over-year from $2.84 million.
  • The Shake Shack earnings report also includes a net loss of -$2.07 million.
  • This is a 277.74% wider net loss than the -$548,000 reported during the same time last year.

Randy Garutti, CEO of Shake Shack, said this about the SHAK stock earnings:

“Looking forward, we expect 2020 will be another year of strong unit growth, domestically and internationally, with 40 to 42 new company-operated Shacks and 20 to 25 net new licensed Shacks. Beyond expansion, we believe this year will be defined by our innovation pipeline with focused investments across our digital products.”

The Shake Shack earnings report also includes its 2020 outlook. The company expects revenue for the period to range from $712 million to $720 million. For comparison, Wall Street is looking for revenue of $737.1 million during the year.

SHAK stock was down 12.74% after-hours Monday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/02/shake-shack-earnings-hammer-shak-stock/.

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