Shake Shack Q2 profit beats on increased sales
SHAK•Outlook and analyst coverage
Shake Shack did not provide specific guidance for the current or future periods.
The current average analyst rating on the shares is "buy," with 15 "strong buy" or "buy" ratings, 13 "hold" ratings and no "sell" or "strong sell" ratings. The average consensus recommendation for the restaurants & bars peer group is "buy." Wall Street's median 12-month price target for Shake Shack Inc is $77.00, about 16.3% above its August 4 closing price of $66.22. The stock recently traded at 50 times the next 12-month earnings, versus a P/E of 68 three months ago.
Quarterly results beat expectations
Shake Shack's second-quarter revenue rose 17% year over year, slightly beating analyst expectations. Adjusted earnings per share for the quarter also beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Slight Beat* | $417.62 million | $417.18 million (22 Analysts) |
| Q2 Adjusted EPS | Beat | $0.43 | $0.31 (22 Analysts) |
| Q2 EPS | $0.37 | ||
| Q2 Adjusted Net Income | $18.90 million | ||
| Q2 Net Income | $16.90 million | ||
| Q2 Adjusted EBITDA | $61.20 million | ||
| Q2 Net Income Attributable to Shake Shack | $15.68 million |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Sales growth and store openings drove results
The company said second-quarter revenue rose 17% year over year, driven by higher Shack sales and licensing revenue. Shake Shack opened 16 new company-operated Shacks and 11 new licensed Shacks in the quarter.
