Shake Shack (NYSE:SHAK) Issues Quarterly Earnings Results

Shake Shack Shake Shack's plans to hit 450 restaurants in time

Shake Shack Shake Shack's plans to hit 450 restaurants in time

The brokerage now has an "equal weight" rating on the stock.

Morgan Stanley analyst John Glass maintains at Equal-Weight, price target lowered from $84 to $76.

A number of other research firms also recently commented on SHAK.

According to CEO Randy Garutti, "We're pleased to report total revenue grew almost 32% and the team delivered another quarter of positive Same-Shack sales of 2%, continuing to drive positive traffic of 1.2%". The stock now has an average rating of "Hold" and an average price target of $82.38. SunTrust Banks has a "Buy" rating and a $102.00 price target on the stock. Barclays lifted their price objective on Shake Shack from $58.00 to $70.00 and gave the company an "equal weight" rating in a report on Tuesday, August 6th. Ten analysts have rated the stock with a hold rating and four have given a buy rating to the stock.

NYSE SHAK opened at $84.21 on Tuesday. The stock has a market capitalization of $3.09 billion, a price-to-earnings ratio of 94.13, a price-to-earnings-growth ratio of 5.13 and a beta of 1.24. The stock's fifty day moving average is $92.48 and its two-hundred day moving average is $78.88. Shake Shack has a 52-week low of $40.67 and a 52-week high of $105.84. The company has a quick ratio of 1.08, a current ratio of 1.10 and a debt-to-equity ratio of 0.97.

Average weekly sales for domestic company-operated Shacks decreased to $80,000 for the third quarter of 2019, compared to $86,000 for the same quarter past year, due to the addition of newer Shacks at a broader range of average unit volumes.

Shares of Shake Shack tanked Tuesday morning, falling as much as 19.57% after the restaurant chain reported third-quarter earnings Monday that showed disappointing same-store sales, partially influenced by the company's partnership with Grubhub.

Revenue was in-line with expectations, but same-store sales rose 2.0%, shy of the 2.5% growth analysts predicted.

Although same-store sales growth lagged behind, Shake Shack witnessed its revenue increased by 31.9% year-over-year. During the same quarter in the prior year, the company posted $0.21 earnings per share. As a group, sell-side analysts predict that Shake Shack Inc will post 0.65 EPS for the current year.

In other news, CEO Randall J. Garutti sold 60,000 shares of the firm's stock in a transaction that occurred on Monday, September 9th. The stock was sold at an average price of $82.54, for a total value of $2,476,200.00.

Avitas Wealth Management LLC reduced its position in Shake Shack Inc (NYSE:SHAK) by 33.9% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The stock was sold at an average price of $87.39, for a total transaction of $87,390.00. Following the transaction, the chief executive officer now owns 90,702 shares of the company's stock, valued at approximately $9,342,306. The disclosure for this sale can be found here. Insiders own 21.85% of the company's stock. Invesco Ltd. now owns 1,099,642 shares of the company's stock worth $79,394,000 after acquiring an additional 1,005,627 shares in the last quarter. Zweig DiMenna Associates LLC acquired a new position in Shake Shack during the 2nd quarter valued at about $7,169,000. Oregon Public Employees Retirement Fund grew its stake in shares of Shake Shack by 2.0% in the 2nd quarter. Steward Partners Investment Advisory LLC grew its position in Shake Shack by 600.0% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,674 shares of the company's stock worth $164,000 after buying an additional 166 shares in the last quarter.

Shake Shack announced that it would start using Grubhub as its only delivery service at the end of the second quarter.

By the end of the most recent quarter, Shake Shack had opened 11 new restaurants in the United States market as well as another six worldwide outlets, including its first in Mexico City, its third in Osaka, Japan, and its first in South Korea's second-largest city Busan.

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