Shake Shack (NYSE:SHAK) earnings for first quarter of 2020 have SHAK stock heading higher after-hours Monday. This comes after reporting adjusted earnings per share (EPS) of 2 cents per share, which is better than Wall Street’s flat estimate. However, the restaurant company’s revenue of $143.17 million is below analysts’ estimates of $145.06 million.
Now, let’s look at some additional highlights from the most recent Shake Shack earnings report.
- Adjusted per-share earnings are down 84.6% compared to 13 cents in the first quarter of 2019.
- Revenue for the quarter is sitting 8% higher than the $132.61 million reported during the same time last year.
- An operating loss of $787,000 is much lower year-over-year than an operating income of $5.16 million.
- The Shake Shack earnings report also includes a net loss of $1.08 million.
- That’s a major decline from the company’s net income of $3.61 million reported in the same period of the year prior.
Randy Garutti, CEO of Shake Shack, said this in the Q1 earnings report:
“We continue to make disciplined adjustments to our cost structure based on reduced operations, but we’re remaining flexible and have started the rehiring process for some of our furloughed team members as our business slowly improves. It’s difficult to predict when and how quickly we will fully rebound once stay-at-home regulations are lifted, but our first priority will continue to be to keep our teams and our guests safe, as we carefully re-open Shacks.”
The Shake Shack earnings report has the company withdrawing its 2020 guidance. It contributes this decision to the novel coronavirus causing problems for the economy.
SHAK stock was up 2.6% after markets closed on Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.