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Shake Shack Q3 revenue rises 15%

By Reuters News


Overview

  • US fast-casual burger chain's Q3 revenue rose 15% yr/yr to $423 mln

  • EPS rose to $0.39, with net income rising to $16.5 mln

  • Company opened 21 new company-operated and 16 new licensed Shacks in the quarter


Outlook

  • Company did not provide specific guidance for future quarters or full-year results in its press release


Result Drivers

  • NEW LOCATIONS - Co opened 21 new company-operated Shacks and 16 new licensed Shacks in Q3, contributing to revenue growth

  • SAME-SHACK SALES - Same-Shack sales increased 2.5% yr/yr, supporting overall sales performance


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.39

Q3 Adjusted Net Income

$17.80 mln

Q3 Net Income

$16.5 mln

Q3 Adjusted EBITDA

$62.80 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the restaurants & bars peer group is "buy"

  • Wall Street's median 12-month price target for Shake Shack Inc is $82.00, about 12.6% above its November 4 closing price of $72.82

  • The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 47 three months ago


Reuters Recommended Reads

  • Nov 4 - McDonald's says US sales on the mend as promotions draw diners back

  • Nov 3 - Yum says Taco Bell rebounding after cyclosporiasis outbreak hit Q3 sales

  • Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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