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3 Things You Should Watch For In Shake Shack's Report

Shake Shack NYSE:SHAK - 3 Things You Should Watch For In Shake Shack's Report

Shares of Shake Shack Inc SHAK 1.59% were trading lower by around 2 percent Thursday. The company is scheduled to report its first quarter results after the closing bell.

CNBC's Landon Dowdy broke down the popular burger joint's earnings print and detailed what investors should be on the lookout for.

Wall Street analysts are expecting the company to earn $0.05 per share in the first quarter on revenue of $52 million.

Dowdy noted that beyond the headline print, investors and traders should pay attention to the company's same-store sales, which are expected to receive a "nice boost" from limited time offers, including a chicken sandwich.

As a restaurant chain, Shake Shack is exposed to commodity costs as rising input prices could put pressure on the company's margins.

Investors and traders should pay close attention to management's commentary regarding its target of opening 13 new locations throughout the year.

Dowdy also pointed out that revenue has increased over the past three years by over 250 percent, but net income has been going down. Accordingly, a "modest" beat in the quarter on the top and bottom lines won't be sufficient to boost shares higher and any "static" guidance could pet heavy selling pressure.

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