Shake Shack (SHAK) Tops Q2 EPS by 4c, Comps Decline 1.8%

Shake Shack (NYSE: SHAK) reported Q2 EPS of $0.20, $0.04 better than the analyst estimate of $0.16. Revenue for the quarter came in at $91.3 million versus the consensus estimate of $89.5 million.

Comps decline 1.8%

GUIDANCE:

Shake Shack sees FY2017 revenue of $351-355 million, versus the consensus of $356.8 million.

• Same-Shack sales decrease of between -2% and -3% (vs. flat to prior year), which includes approximately 1.5% to 2% of menu price increases taken at the end of December 2016.
• Between 23 and 24 new domestic company-operated Shacks to be opened in fiscal 2017, with average annual sales volumes of at least $3.4 million (vs. $3.3 million).
• Increase to 15, net new licensed Shacks to be opened in fiscal 2017 (vs. 12, net).
• Shack-level operating profit margin between 26.5% and 27.5%.
• General and administrative expenses between $38 million and $40 million.
• Depreciation expense of approximately $22 million.
• Interest expense between $1.6 million and $2.0 million.
• Adjusted pro forma effective tax rate between 40% and 41% (excluding the impact from the recognition of windfall tax benefits related to the adoption of ASU 2016-09).

For earnings history and earnings-related data on Shake Shack (SHAK) click here.

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