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Shake Shack (NYSE:SHAK) declared the commencement of a secondary offering of its Class A common stock (the “Offering”) pursuant to a registration statement filed on Form S-1 with the Securities and Exchange Commission (the “SEC”).
Ahead of Monday’s Q2 report, the stock was down about 3% to just below $US70 per share. The average 12-month price target on Shake Shack is $44.75, marking a 34.73% downside from where the stock last closed. The Impax Generics is focused on the development, manufacture, sale and distribution of the Company’s generic products, which are the pharmaceutical and therapeutic equivalents of brand-name drug products and are marketed under their established drug names. The 12-month consensus target price for the stock is $43.4, which reflects an downside potential of 36.73% over the current price.
In a Wall Street Journal op-ed, writer Spencer Jakab questioned how “nourishing” Shake Shack’s fundamentals are, considering that it has a $2.6 billion market value, which may seem “rich” for a burger chain that has only 71 restaurants, a paltry number compared to fast food giants McDonald’s and Wendy’s.
Shake Shack earned 9 cents per share, excluding items, in the second quarter on total revenue of $48.5 million.
Shake Shack also expects it will open 12 company-operated locations in 2015.
Shake Shack had a very good start to the year, and that momentum carried into the spring and shows no sign of slowing. Analysts estimated revenues of $42.8 million.
It’s easy to understand the polarizing sentiment surrounding Shake Shack, though.
Garutti said the chain will open 12 domestic, company-owned stores in 2015, up from the projected 10, and another 12 next year (including first stores in Los Angeles, Phoenix and Scottsdale). It has said it plans to open about 10 new locations a year. Shake Shack has a 52 week low of $38.63 and a 52 week high of $96.75.
The company now expects full-year revenue of $171 million to $174 million, up from its previous range of $161 million to $165 million. Management also isn’t sitting idly by, they are looking for ways of strengthening the company’s bottom line. The firm now has an equal weight rating on the stock.
MannKind’s earnings report will likely focus less on numbers and more on its pipeline drug, Afrezza, a rapid-acting inhalable insulin for adults with diabetes.
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Yamana Gold, Inc. (AUY) of the Basic Materials is down -4.74% this morning at $2.21 and 1857346 shares.
