SHAK Earnings Prediction
The chart below shows how SHAK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHAK sees a -3.44% change in stock price 10 days leading up to the earnings, and a -1.48% change 10 days following the report. On the earnings day itself, the stock moves by +3.60%. This data can give you a slight idea of what to expect for the next quarter's release.
SHAK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
328.68M
14.83%
3.71%
Gross Margin
39.43%
9.41%
4.09%
Operating Margin
3.88%
2182.35%
-69.33%
Net Margin
2.84%
12.25%
-180.91%
EPS
0.20
25.00%
-176.92%
No Data Available
SHAK Earnings Analysis
Shake Shack Inc Corporation (SHAK.N) Earnings Conference Call
Positive
Quarterly Revenue Increase: Fourth quarter revenue increased by 14.8%, driven by 4.3% same Shack sales.
Margin Expansion Achievement: Restaurant-level margins expanded nearly 300 basis points to 22.7%.
Record EBITDA Growth: Adjusted EBITDA grew almost 50% year-over-year, reaching a record $46.7 million in Q4.
Record Shack Openings: Opened 43 company-operated Shacks in 2024, the highest number in a single year.
Record Restaurant Profit Growth: Achieved a record restaurant-level profit of $257.9 million, up 24% year-over-year.
Labor Cost Improvement: Successfully implemented a new labor scheduling system that improved labor costs by 160 basis points year-over-year.
Consistent Profit Margin Expansion: Achieved 10 consecutive quarters of expanding restaurant-level profit margins year-over-year.
Marketing Campaign Success: Launched successful marketing campaigns, such as Chicken Sundays, which improved brand awareness and sales.
Licensing Revenue Expansion: Expanded licensing revenue to $12.1 million in Q4, with a total of 250 licensed Shacks across 20 countries.
Record Free Cash Flow: Generated a record $36 million in free cash flow, the first positive free cash flow since 2017.
Negative
Earnings Miss Report: Shake Shack Inc. misses on earnings expectations, reporting an EPS of $0.208 against expectations of $0.25.
Modest Sales Growth: Same-Shack sales growth was only 4.3%, which is relatively modest given the competitive landscape.
Customer Acquisition Challenges: Traffic was nearly flat, indicating challenges in attracting new customers despite marketing efforts.
Sales Impact from Weather: The company faced significant weather pressures and the impact of the Los Angeles wildfires, which negatively affected sales in January.
Sales Growth Challenges: The guidance for first quarter 2025 indicates potential challenges with same-Shack sales growth due to weather and wildfire impacts, as well as lapping strong previous year performance.
Inflation Impact on Margins: The company anticipates low single-digit inflation in food and paper costs, which could pressure margins despite efforts to manage costs.
Marketing Expense Impact: Marketing expenses are expected to increase in the first half of the year, which may impact profitability in the short term.
SHAK FAQs
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SHAK Earning Call Sentiment
Shake Shack Inc. (NYSE:SHAK) Q4 2024 Earnings Call Transcript
SHAK.N
-12.05%Positive
The earnings call highlights strong financial performance with significant year-over-year growth in adjusted EBITDA and restaurant-level profit margins. The Q&A section reveals confidence in achieving a 22% restaurant margin, improved labor management, and supply chain efficiencies. Despite some uncertainties in management's responses, the overall positive financial metrics, optimistic guidance, and strategic initiatives such as the loyalty program and drive-thru optimization suggest a positive stock price movement in the near term.
