Shake Shack Inc SHAK missed analysts' revenue expectations amid a year-over-year drop in comparable store sales in the fourth quarter, sending the burger chain's share price down in after-hours trading Monday.
Same-store sales were down 3.6% year over year and the company also issued fiscal 2020 sales guidance below estimates.
Shake Shack reported quarterly earnings of 6 cents per share, unchanged from the same period last year. Quarterly sales came in at $151.4 million, missing the Street estimate of 1.17%.
The company said it had 25 system-wide store openings during the quarter, including 12 domestic company-operated stores and 13 licensed Shacks. Four licensed stores closed, including three in Russia.
2019 Highlights
- Total revenue increased 29.4% to $594.5 million.
- Store sales increased 29.0% to $574.6 million.
- Same-store sales increased 1.3%.
Management had warned late last year that the chain's move to GrubHub Inc GRUB as its exclusive partner for delivery would likely have a short-term negative impact on revenue, particularly in places where GrubHub isn't the dominant food delivery option.
CEO Randy Garutti focused on the company's growth over the full year in a statement, noting that it opened 73 stores around the world in 2019 and that total revenue on the year increased by nearly 30%.
“Looking forward, we expect 2020 will be another year of strong unit growth, domestically and internationally," Garutti said.
SHAK Price Action
Shake Shack shares were down 9.27% in after-hours trading to $66.75. Shake Shack's stock has risen nearly 30% since the start of 2020.
Related Links:
SunTrust Downgrades Shake Shack Amid Same-Store Sales Concerns
Shake Shack Stock Heats Up Following ICR Presentation, Bullish Goldman Comments
Photo by m01229 via Wikimedia.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.