Stock Story -
Fast-food chain Shake Shack (NYSE:SHAK) will be announcing earnings results tomorrow before market hours. Here's what to expect.
Shake Shack met analysts' revenue expectations last quarter, reporting revenues of $290.5 million, up 14.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.
Is Shake Shack a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Shake Shack's revenue to grow 15.6% year on year to $314.3 million, slowing from the 17.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Shake Shack has missed Wall Street's revenue estimates four times over the last two years.
Looking at Shake Shack's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 18.2%, beating analysts' expectations by 1.1%, and BJ's reported flat revenue, in line with consensus estimates. Chipotle traded down 1.9% following the results while BJ's was also down 15.4%.
Read the full analysis of Chipotle's and BJ's results on StockStory.
There has been positive sentiment among investors in the restaurants segment, with share prices up 2.9% on average over the last month. Shake Shack is up 3.1% during the same time and is heading into earnings with an average analyst price target of $109 (compared to the current share price of $88.02).
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