For today’s bulletin, we take a look at Shake Shack Inc. (SHAK). Shake Shack is engaged in owning and operating restaurants. The company offers burgers, hot dogs, frozen custard, crinkle cut fries, beer and wine. It operates primarily in New York, New Jersey, Washington, D.C., Connecticut, Georgia, Illinois, Pennsylvania, Florida, Massachusetts, Virginia, Nevada, London, Istanbul and Dubai. Shake Shack Inc. is headquartered in New York.
Shake Shack approaches levels of dedication among its fans that approach In N’ Out levels. That means tasty burgers and cult-like followings. When the company reported earnings back in February, the numbers were lacking compared to last year’s with a loss of $14.4 million, or 55 cents a share, compared with net income of $3.9 million, or 15 cents a share. This loss was a result of US tax law changes, and when those costs were excluded, Shake Shake earned $0.10/share–which was a beat. Investors were also disappointed by a weak revenue and same-store sales forecast.
At the time, company CEO Randy Garutti said “We’re remaining cautious. It’s been a volatile time for us. We’ve got our largest class of restaurants coming yet. And, you know, as the industry continues to evolve, we’re going to remain cautious in our outlook. And for us, … that looks like a flat guidance at this time, and we’re putting a lot of strategies in place to do our best to beat that.”
The chain remains committed to expansion plans and expects to have 200 US locations and 120 stores across the globe by 2020.
Below is our latest data for Shake Shack Inc., one of our top BUY upgrades for the day.
ValuEngine updated its recommendation from HOLD to BUY for Shake Shack on 2018-04-06. Based on the information we have gathered and our resulting research, we feel that Shake Shack has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Momentum and Price Sales Ratio.