Shake Shack Inc
Shake Shack reported its Q3 adj. EPS at $0.15, representing 25 percent year-over-year growth and beating the expectation of $0.14. Adj. EBITDA came in at $13.0 million, ahead of Barclays’ estimate of $12.5 million. Comps of 2.9 percent came in ahead of the expectation of 1.5–2.0 percent and were “seemingly more stable than the broader industry,” analyst Bernstein noted.
Shake Shack raised its year-over-year revenue growth guidance for 2016 from 33–34 percent to 39 percent. The company also projected its 2017 revenue at $348 million–352 million, representing 32 percent year-over-year growth. This growth is expected to be driven by U.S. co-op unit opens of 21–22, while comps are expected to be at 2–3 percent.
Bernstein raised the EPS estimates for 2016 and 2017 from $0.45 to $0.46 and from $0.57 to $0.58, respectively.
“While there was upside to comp, it's settling into a low-single-digit range. But importantly, the investment thesis is all about unit growth, with 35% + y-y US co-op growth expected in 2017,” the analyst commented. He noted further that comps drive the stock multiple, and the Q3 beat coupled with “outsized unit growth” should “drive
In a separate report, Wedbush’s Nick Setyan pointed out that the company could face
At last check, Shake Shack was up 14.46 percent at $38.07.
Image Credit: By m01229 from USA (Shake Shack dinner in New Haven) [CC BY 2.0] via
|Aug 2016||SunTrust Robinson Humphrey||Upgrades||Neutral||Buy|
|Aug 2016||JP Morgan||Maintains||Neutral|
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