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Burger chain Shake Shack (SHAK) announced, after Monday's close, fourth quarter earnings above expectations. But the company forecasts annual revenues below expectations. Shake stock shack fell after hours.
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Shake Shack Gains
estimates: Wall Street expects Shake Shack's earnings per share to drop 70 percent from a year earlier, to 3 cents, according to Yahoo Finance. Revenues from the best hamburger chain climbed 24% to $ 118.82 million. Consensus Metrix expects a 1.2% decline in same-store sales.
Results: Same store sales increased 2.3%. Earnings per share were 6 cents.
Total revenues jumped 29.3% to $ 124.3 million. Restaurant sales increased 29.6% to $ 120.7 million.
The company said it expects a total business figure of between $ 570 and $ 576 million for the entire year. Analysts were forecasting $ 576.44 million, according to Yahoo Finance. The company said it expects comparable store sales during this period to be in the range of 1% up.
Shake Shack said she planned to open between 36 and 40 company-run restaurants nationwide. The company said it expects to open 16 to 18 new licensed stores throughout the year.
"In 2019, we expect another year of record growth with 36 to 40 new corporate cabins, 16 to 18 net new licensed cabs, with our international growth focused on Asia and our entry into new markets. from mainland China, Singapore to the Philippines and Mexico, "said CEO Randy Garutti in a statement.
Shake Shack Stock
Shake Shack shares have fallen 3% after opening hours on the stock market today. The shares are above their 50-day threshold but remain below their 200-day threshold. Shake Shack is safe from his 52 week high of 70 weeks since last July.
The relative strength of Shake Shack shares has tended to deteriorate during the summer and early fall and has since flattened out. The RS line measures the performance of an action compared to the S & P 500.
"Most tangible" sales factor for 2019
In a research note released last month, SunTrust analyst Jake Bartlett said Shake Shack was focused on digital control, creating an app and kiosks. The chain also tests the delivery. But Bartlett said the company was still working on the packaging details and on other operational issues – such as shops not delivering during the busiest hours of the day – before deciding on a partnership. firm delivery.
Shake Shack, although renowned for his quick and casual hamburgers, has also tested chicken nuggets, which he calls Chick's Bites, in some places since last year. Bartlett said that chicken nuggets were Shake Shack's "most tangible sales force" this year. Shake Shack is planning a larger launch of this menu item in the first quarter.
Still, the company faces challenges in attracting and retaining talent. Quo Vadis Capital analyst, John Zolidis, also pointed to shrinking margins and customer traffic, as well as a poor history of comparable store sales growth.
"For the fourth quarter, the expectations are quite low and we doubt that we will miss SHAK," he said in a comment sent by email Monday. "However, we expect SHAK to leave 2019 as far as possible, as it has always provided a very conservative perspective."
Other fast food stocks
McDonalds (MCD) was unchanged after normal working hours. McDonald's shares have recently found support above their 50-day limit. The shares progressed to a point of purchase of 189.52 points in a cup base.
Restaurant Brands International (QSR), which owns Burger King, was also unchanged after hours. The Restaurant Brands stock is close to a 64.27 point of purchase in a large base with tumbler.
Wendy (WEN) was also inactive late on Monday.
Chipotle Mexican Grill (CMG) was also inactive. Starbucks (SBUX) lost 0.1%. Both actions are on IBD Leaderboard.
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