U.S. Markets closed

Free Post Earnings Research Report: Shake Shack’s Quarterly Revenues Surged 31.2%; Adjusted EPS Climbed 11%

LONDON, UK / ACCESSWIRE / March 28, 2018 / Active-Investors.com has just released a free earnings report on Shake Shack Inc. (NYSE: SHAK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SHAK. The Company reported its fourth quarter fiscal 2017 operating and financial results on February 15, 2018. The fast-food chain surpassed top- and bottom-line expectations. Additionally, the Company provided guidance for FY18, and also shared targets for FY20. Register today and get access to over 1000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Shake Shack most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Earnings Highlights and Summary

For the fourth quarter of the fiscal year 2017, Shake Shack's total revenues jumped 31.2% to $96.1 million from $73.3 million in Q4 2016. The Company's revenue numbers beat analysts' estimates of $92.8 million.

During Q4 2017, Shake Shack's general and administrative (G&A) expenses increased 41% to $11.7 million from $8.3 million in Q4 2016. As a percentage of total revenues, the G&A expenses increased to 12.1% in the reported quarter from 11.3% in the prior year's same quarter, primarily due to higher payroll expenses from an increased headcount; technology development costs; initial costs related to Project Concrete, the Company's operational and financial systems upgrade initiative; and duplicative non-cash deferred rent related to Shake Shack's new home office.

For Q4 2017, Shake Shack's operating income advanced 17.0% to $5.8 million compared to $5.0 million in Q4 2016. The Company's operating income margin decreased 70 basis points to 6.1%. The Company's Shack-level operating profit surged 30.3% to $23.5 million in Q4 2017 from $18.0 million in Q4 2016. As a percentage of Shack sales, Shack-level operating profit margin decreased 20 basis points to 25.2%, primarily due to increased labor and related expenses; other operating expense deleverage; and the introduction of a broader range of unit volume Shacks into the system.

In Q4 2017, Shake Shack's net loss attributable to common shareholders was $14.4 million, or $0.55 loss per diluted share, compared to a net income of $3.9 million, or $0.15 per diluted share, in Q4 2016. From the Tax Cuts and Jobs Act 2017 (TCJA), which was enacted into law in December 2017, the Company recognized a $125.9 million benefit in other income related to the reduction in liabilities under its tax receivable agreement. The Company also recognized an additional $138.6 million of income tax expense as a provisional amount, relating to the remeasurement of its deferred tax assets.

Shake Shack's adjusted pro-forma net income was $3.9 million, or $0.10 per diluted share, in Q4 2017 compared to $3.3 million, or $0.09 per diluted share, in Q4 2016. The Company's earnings beat Wall Street's estimates of $0.06 per share.

For the full year FY17, Shake Shack's total revenues surged 33.6% to $358.8 million compared to $268.5 million in FY16.

For FY17, Shake Shack's net loss attributable to common shareholders was $2.3 million, or $0.09 loss per diluted share, compared to a net income of $12.4 million, or $0.53 per diluted share, in FY16. The Company's adjusted pro-forma net income was $21.0 million, or $0.57 per diluted share, in FY17 compared to $16.8 million, or $0.46 per diluted share, in FY16.

Operating Results

In Q4 2017, the Company's Shack sales advanced 31.3% to $93.1 million compared to $70.9 million in Q4 2016, primarily due to the opening of 26 new domestic Company-operated Shacks. The Company's licensing revenues were $3.0 million in the reported quarter, reflecting an increase of 27.9% from $2.4 million in the prior year's comparable quarter, primarily due to the opening of 19 net new licensed Shacks and the initial strength of newer Shacks in South Korea.

The Company's same-Shack sales increased 0.8% in Q4 2017 versus a growth of 1.5% in Q4 2016. The comparable Shack base includes those restaurants open for 24 full fiscal months or longer. During Q4 2017, the comparable Shack base included 43 Shacks versus 29 Shacks in Q4 2016.

Shake Shack's average weekly sales for domestic Company-operated Shacks were $85,000 in Q4 2017 compared to $90,000 in Q4 2016, reflecting a drop of 5.6%, primarily due to the addition of newer Shacks at lower average unit volumes.

Financial Outlook

For the full fiscal year ending December 26, 2018, Shake Shack is forecasting total revenues to be in the range of $444 million and $448 million. The Company is expecting same-Shack sales to remain flat, which includes approximately 1.5% to 2% of menu price increases taken in December 2017.

For FY18, Shake Shack is planning to open 32 to 35 new domestic Company-operated Shacks and between 16 and 18 net new licensed Shacks. Shake Shack is estimating average annual sales volume for total domestic Company-operated Shacks to be between $4.1 million and $4.2 million, and Shack-level operating profit margin between 24.5% and 25.5%.

2020 Targets

By the end of the fiscal year 2020, Shake Shack is targeting at least 200 domestic Company-operated Shacks, at least 120 global licensed Shacks, and over $700 million in total revenues.

Stock Performance Snapshot

March 27, 2018 - At Tuesday's closing bell, Shake Shack's stock dropped 1.20%, ending the trading session at $41.06.

Volume traded for the day: 468.20 thousand shares.

Stock performance in the last month – up 5.28%; previous six-month period – up 22.17%; and past twelve-month period – up 27.12%

After yesterday's close, Shake Shack's market cap was at $1.50 billion.

Price to Earnings (P/E) ratio was at 86.81.

The stock is part of the Services sector, categorized under the Specialty Eateries industry.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors