The newcomer burger chain Shake Shack, which has just 71 locations, is worth nearly as much as Wendy’s.
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Average weekly sales for domestic company-operated Shacks gained 7.4 percent year-over-year to $102,000 from $95,000. Finally, Jefferies Group reaffirmed a “hold” rating and set a $60.00 price target on shares of Shake Shack in a research report on Friday, June 26th. The company’s market cap is $863.84 million.
The New York-based company posted quarterly net income of $1.1 million, or $0.08 per share, versus $1.9 million, or $0.06 per share, in the year-ago period. As for financials, Shake Shack expects full year same-store sales growth in the mid- to high-single digit percent rage (compared to low- to mid-single digits previously expected) and total revenue of $171 million to $174 million (up from $161 million to $165 million). In Monday after-hours trading, the stock traded at $78.04.
Shake Shack was expected to report earnings of 3 cents per share on $42.8 million in revenue, according to analysts surveyed by Thomson Reuters. Three investment analysts have rated the stock with a sell rating and six have issued a hold rating on the company. The firm has a 50-day moving average of $59.35 and a 200 day moving average of $58.75. Shareholders plan to sell an additional 4 million shares. Longbow Research reiterated a “hold” rating on shares of Shake Shack in a report on Thursday, July 2nd. The company, which has 37 company-operated U.S. shops, attributed the results to menu price increases, the return of crinkle-cut fries, a shake special and strong results from Las Vegas and Chicago.
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For the second quarter, Shake Shack’s same restaurant sales included 16 domestic company-operated units open for 24 months or longer. “Looking ahead to 2016 and beyond, we now expect to open at least 12 domestic company-operated Shacks annually”.
