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Shake Shack Earnings: What To Look For From SHAK

StockStory - Wed May 1, 2:13AM CDT

SHAK Cover Image

Fast-food chain Shake Shack (NYSE:SHAK) will be announcing earnings results tomorrow before market hours. Here's what investors should know.

Shake Shack beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $286.2 million, up 20% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Shake Shack a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Shake Shack's revenue to grow 14.9% year on year to $290.9 million, slowing from the 24.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Shake Shack Total Revenue

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 three times over the last two years.

Looking at Shake Shack's peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 14.1%, beating analysts' expectations by 1.2%, and Restaurant Brands reported revenues up 9.4%, topping estimates by 2.2%. Chipotle traded up 6.5% following the results.

Read our full analysis of Chipotle's results here and Restaurant Brands's results here.

Inflation fears have put pressure on growth stocks, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Shake Shack is up 5.2% during the same time and is heading into earnings with an average analyst price target of $105.9 (compared to the current share price of $108.82).

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