Shake Shack shares surged by 20% Thursday morning following robust fourth-quarter earnings.
With this surge, the stock hit a new 52-week high of $95.80, marking a more than 50% increase over the past year.
As a company, Shack Shake has given a phenomenal performance during the period. Here are the esteemed results compared to estimates from LSEG (formerly known as Refinitiv):
– Earnings per share: 2 cents (vs. expected 1 cent)
– Revenue: $286.2 million (vs. expected $280.3 million)
In the final quarter of 2023, Shake Shack reported a net income of $6.8 million, a significant improvement from the $8.1 million loss in the previous year.
Shake Shack seems to be on an upward trajectory based on these figures. Shifting from a loss to a profit in earnings per share demonstrates improved financial performance.
The significant revenue increase and expansion in the number of restaurants reflect positive growth momentum. The adjusted earnings per share of 2 cents, after accounting for one-time items, indicates a more accurate picture of the company’s ongoing profitability.
The projections for 2024 also seem optimistic, with anticipated total revenue growth of 11% to 15% and plans to open 80 new restaurants.
These plans suggest that Shake Shack is confident in its ability to continue expanding its market presence and generating increased revenue. It’ll be interesting to see how these projections materialize and how the company manages its growth in the upcoming year.
This expansion would bring the total number of Shacks, including company-owned and licensed locations, to nearly 600—more than double the count from five years ago.
“We closed the year on a high note, seeing positive traffic in the fourth quarter due to the success of our sales-driving strategies and continued margin expansion,” stated CEO Randy Garutti in a letter to shareholders.
“Our leadership teams are energized and excited as we embark on our 2024 Strategic Priorities, targeting another year of robust growth and margin expansion.”
