Shake Shack +18% After Q2 Topline Beat, Strong Restaurant-Level Profit Margins Profit, FY2024, Revenue, Net income, Q2 earnings, Inventories, Shake Shack, Wedbush analyst, Adjusted EBITDA, Operating margin, Cash and equivalents, System-wide sales growth, Restaurant-level profit margin by https://www.benzinga.com/
AI Insights:
Simple Explanation:
Shake Shack, a company that makes and sells hamburgers, had a good second quarter. They made more money than people expected, and they sold more hamburgers than before. This made their stock go up in value. Read from source...
Critical Perspective:
- The company reported adjusted earnings per share of 27 cents, which is in line with the street view.
* This is not a criticism, but it is not a significant achievement either.
* It is not clear what the "street view" refers to. Is it the analyst consensus, the consensus estimate, or something else?
* It is also not clear how this performance compares to the previous year or the company's own guidance.
- Quarterly sales of $316.50 million (+16.4%) topped the analyst consensus of $314.20 million.
* This is a positive statement, but it is not backed by any sources or data.
* It is not clear what the analyst consensus is based on, or how reliable it is.
* It is also not clear how this performance compares to the previous year or the company's own guidance.
- System-wide sales reached $483.7 million, marking a 13.5% increase compared to 2023.
* This is a positive statement, but it is not backed by any sources or data.
* It is not clear what the system-wide sales are, or how they are calculated.
* It is also not clear how this performance compares to the company's own guidance or the industry average.
- Same-Shack sales grew by 4.0% year-over-year.
* This is a positive statement, but it is not backed by any sources or data.
* It is not clear what the same-Shack sales are, or how they are calculated.
* It is also not clear how this performance compares to the company's own guidance or the industry average.
- Operating income rose to $10.8 million, up from $4.7 million in the year-ago period.
* This is a positive statement, but it is not backed by any sources or data.
* It is not clear how this performance compares to the company's own guidance or the industry average.
* It is also not clear what the operating income is based on, or how it is calculated.
- Adjusted EBITDA surged by 27.4% to $47.2 million in the quarter year over year.
* This is a positive statement, but it is not backed by any sources or data.
* It is not clear what the adjusted EBITDA is based on, or how it is calculated.
* It is also not clear how this performance compares to the company's own guidance or the industry average.
Investment Analysis:
We are not financial advisors. It's always essential for you to consult with a financial advisor and do your research before making any decisions about investments.
- SHAK reported Q2 earnings that beat both revenue and profit estimates.
- Restaurant-level profit margin increased by 100 bps YoY, and the company opened 23 new Shacks.
- The stock is trading higher by 18.7% after the earnings release.
- Wedbush analyst reiterates Shake Shack with a Neutral rating and a $90 price target.
Summary:
Shake Shack (SHAK) beat Q2 earnings and revenue estimates, with strong sales growth and margin expansion. The company also opened 23 new Shacks during the quarter. The stock is up 18.7% after the earnings release, but Wedbush analyst Nick Setyan maintains a Neutral rating and a $90 price target.