Shake Shack stated Monday that worth hikes and the return of its crinkle-cut French fries helped carry gross sales 12.9 % at established places through the second quarter, and raised its outlook for the yr. Jefferies Group restated a “hold” rating and set a $60.00 target price on shares of Shake Shack in a report on Monday, June 29th.
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Shake Shack Inc.is raising the starting pay at its four Washington, D.C., area restaurants to $12 an hour as part of a strategy to stay ahead of rising minimum wages in many communities. The transaction is predictable to be accretive by no less than $0.10 per share to Mallinckrodt’s adjusted fiscal 2016 earnings and increasingly accretive therefollowing.
Same-store sales gained 12.9 percent.
Analysts said that despite having much lesser number of outlets across the country, in comparison with other burger chains, Shake Shack has been setting examples of high-quality food and ambience for McD’s and Wendy’s.
The company now expects full-year revenue of $171 million to $174 million, up from its previous range of $161 million to $165 million. The company’s stock had a trading volume of 847,151 shares. Zacks cut Shake Shack from a “buy” rating to a “hold” rating in a research report on Tuesday, July 14th.
For the second quarter, Shake Shack’s same restaurant sales included 16 domestic company-operated units open for 24 months or longer. (NYSE:SHAK) is $96.749 and the 52-week low is $38.635.
“To be sure, investors are betting that Shake Shack will grow to become the size of a big chain someday – though the company itself says it plans to grow only to about 450 locations in the US, which will make it something of a destination fast-casual concept, rather than an everyday lunch place”, Jonathan Maze writes in Nation’s Restaurant News. That also topped the $42.8 million Wall Street expected.
Over the past 3 months, shares of Shake Shack have been almost unchanged after shares had a wild ride just after its IPO in January.
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In its filing, Shake Shack said this offering will facilitate the sale by existing shareholders, presumably company insiders who haven’t been able to sell their stakes following the IPO, as the company won’t receive any proceeds from the offering.
