Fast-food chain Shake Shack (NYSE:SHAK) will be reporting results tomorrow before market open. Here’s what you need to know.
Shake Shack met analysts’ revenue expectations last quarter, reporting revenues of $316.5 million, up 16.4% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA 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 14.5% year on year to $316.1 million, slowing from the 21.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 5.1%, missing analysts’ expectations by 1.6%, and Texas Roadhouse reported revenues up 13.5%, in line with consensus estimates. Domino's traded up 4% following the results while Texas Roadhouse was also up 3.6%.
Read our full analysis of Domino’s results here and Texas Roadhouse’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 5.5% on average over the last month. Shake Shack is up 10.8% during the same time and is heading into earnings with an average analyst price target of $115.95 (compared to the current share price of $114.39).
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