Shake Shack is currently priced to perfection at $110s, struggling to break through the $120s-$130s resistance after a 92% YTD gain. Despite strong earnings and growth, Shake Shack's premium positioning may limit its expansion to 1,500 locations, especially in suburban areas. I recommend holding Shake Shack stock, with a potential buy in the low $100s or high $90s, and a sell if it nears $130s.
Shake Shak's fourth-quarter fiscal 2024 results reflect benefits from unit growth and sales volume. Read on to unravel the factors defining the quarter.
The financial results for Shake Shack (SHAK) provide an overview of the company's performance for the quarter ending in December 2024. It may also be helpful to compare some important metrics to Wall Street predictions and figures from the previous year.
Shake Shack is taking advantage of its financial resources after opening 43 new restaurants, which has led to significant revenue growth. Rising inflation is reducing the price differences between quick-service restaurants and fast-casual dining, making Shake Shack's premium products more appealing to customers. With steady cash reserves and reasonable debt, Shake Shack is in a strong position to continue growing and aims to operate 1,500 restaurants in total.
Shake Shack (SHAK) reported quarterly earnings of $0.26 per share, which is higher than the Zacks Consensus Estimate of $0.25 per share. This is an improvement compared to earnings of $0.02 per share from the same period last year.
Shake Shack Inc. (NYSE:SHAK) will hold its Q4 2024 Earnings Conference Call on February 20, 2025, at 8:00 AM ET. The call will feature company representatives, including Michael Oriolo, Rob Lynch, and Katie Fogertey, along with various analysts from different financial firms. The operator will begin the call by welcoming everyone to the discussion.
Shake Shack plans to grow to 1,500 locations but is dealing with issues related to costs, entering suburban areas, and keeping its high-end brand image. The company showed good growth in FY 2024 but anticipates a small decrease in growth for FY 2025, expecting same-store sales to rise by 3%. Even though their stock price has recently fallen, Shake Shack is still considered overvalued by 10%, resulting in a 'Hold' rating and a price target of $110.
The hamburger restaurant chain Shake Shack (SHAK -1.27%) has significantly expanded its long-term goals. However, this could present the most challenging situation for shareholders since the company became public ten years ago.
SHAK has announced its initial financial results for the fourth quarter. For the year, Same-Shack sales increased by 3.6%, while in the fourth quarter, they rose by 4.3%.
Rob Lynch, the CEO of Shake Shack, appears on 'Closing Bell Overtime' to discuss the company's growth plans, rising beef prices due to inflation, Q4 sales, and other topics.