Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

StockBeat: Shake Shack Hits Year High as International Growth Beefs up Earnings

Published 08/06/2019, 01:12 PM
Updated 08/06/2019, 03:34 PM
© Reuters.

Investing.com - Shake Shack (NYSE:SHAK) sizzled to a 52-week high Tuesday after delivering an earnings beat and raising guidance as burger-munching customers abroad flocked to the trendy burger chain.

The company also inked a new partnership with delivery company GrubHub (NYSE:GRUB).

Shake Shack (NYSE:SHAK) shares were up 16.3% at 2:01 p.m. ET (18:02 GMT) after hitting a 52-week high of $84.96 earlier in Tuesday's session. The shares are up nearly 88% this year.

For full-year 2019, the company guided revenue in the range of $585 to $590 million, up from its prior guidance of $576 to $582 million, but below estimates of $591.5 million. Shake Shack (NYSE:SHAK) sales growth is forecasted to grow about 2%, compared with estimates of 2.2% growth.

The upgraded guidance comes as earnings and revenue topped consensus estimates from Investing.com as the company’s efforts to expand its geographical footprint beefed up performance.

Shake Shack reported second-quarter earnings of 27 cents a share on revenue of $152.7 million, above consensus estimates for earnings of 22 cents a share on revenue of $149.5 million.

During the quarter, the company opened 11 domestic company-operated Shacks, two domestic licensed Shacks, and six international licensed Shacks, which included its first Shacks in the Philippines and Singapore, at the Jewel Changi Airport.

Shake Shack’s better-than-expected quarterly growth and delivery partnership with Grubhub drew praise from Wall Street analysts, several of which raised their price targets on the burger chain's shares.

Wedbush raised its target on shares of Shake Shack to $75 from $70, JPMorgan to $69 from $58, SunTrust to $86 from $70 and Jefferies to $68 from $55.

The consensus estimate among analysts polled by Investing.com is $69.60.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.