Shake Shack Soars on Stellar Q4 Earnings and Optimistic 2024 Forecast

📝 SUMMARY: Shake Shack Inc. ($SHAK) experienced a significant surge in its stock value, jumping 26% on Thursday, after announcing strong fourth-quarter earnings that exceeded analysts' expectations. The company's stock reached a new 52-week high of $98.90, marking an increase of over 67% in the past year, highlighting investor confidence and the company's robust performance.

In the fourth quarter, Shake Shack reported earnings per share of 2 cents, surpassing the 1 cent expectation set by analysts from $LSEG (formerly Refinitiv). The company's revenue for the quarter stood at $286.2 million, exceeding the projected $280.3 million. This performance represents a notable turnaround from the previous year, with net income reaching $6.8 million, compared to a loss of $8.1 million in the same period a year earlier. Earnings per share improved to a 15-cent profit from a 20-cent loss year-over-year.

Adjusting for one-time items, the company achieved earnings of 2 cents per share. Additionally, Shake Shack reported a 20% increase in revenue compared to the previous year and opened 15 new restaurants in the quarter, underscoring its aggressive expansion strategy.

Looking ahead to 2024, Shake Shack has set ambitious goals, aiming to grow total revenue by 11% to 15% and to open 80 new restaurants. This expansion plan would nearly double the company's footprint compared to five years ago, bringing the total number of locations, including company-owned and licensed, to nearly 600.

CEO Randy Garutti expressed optimism about the company's future, citing positive traffic in the fourth quarter, the success of sales-driving strategies, and continued margin expansion. Shake Shack's leadership is geared up for 2024, focusing on strategic priorities that promise another year of strong growth and further margin expansion.

🔍 SOURCE: https://www.cnbc.com/2024/02/15/shake-shack-shak-earnings-q4-2023.html