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Shake Shack (SHAK) to Report Q4 Earnings: What's in Store?
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Shake Shack Inc. (SHAK - Free Report) is scheduled to report fourth-quarter 2022 financial numbers on Feb 16, before the opening bell. In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate.
What to Expect
The Zacks Consensus Estimate is pegged at a loss of 11 cents, flat year over year. In the past seven days, the company’s earnings estimates have been stable. The Zacks Consensus Estimate for revenues is pegged at $238.5 million, indicating an increase of 17.3% from the prior-year actual figure.
Let’s delve deeper to find out how the company’s top and bottom lines will shape up for this earnings season.
Factors at Play
Shake Shack’s top line is likely to have benefited from robust same store sales, store opening and digitalization. Robust Shack sales are likely to aid results. We expect Shack sales to increase 16.1% year over year to $227.4 million.
The company has been investing in digital transformation which is crucial for its growth. Recently, the company reported robust preliminary sales for the fourth quarter of fiscal 2022. Total revenues rose 17.3% year over year to $238.5 million. Same-Shack sales rose 5.1% year over year. In third-quarter fiscal 2022, same-Shack sales had increased 6.3% year over year.
However, high cost is likely to have negatively impacted the company’s bottom line. SHAK has been witnessing inflation throughout the supply chain. The company’s premium ingredients have witnessed a significant increase in a very short period. Higher expenses may weigh on margins in the quarter-to-be reported. We expect food and paper costs, labor and related expenses as well as other operating expenses to increase 16%, 18% and 21.6%, respectively, year over year.
What Does the Zacks Model Unveil?
Our proven model shows that Shake Shack is likely to beat earnings estimates this quarter. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter-to-be reported:
Ruth's Hospitality Group, Inc. currently has an Earnings ESP of +12.50% and a Zacks Rank #3.
RUTH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 19%, on average. Earnings for the to-be-reported quarter are expected to decline 5.9% year over year.
BJ’s Restaurants, Inc. (BJRI - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3.
BJRI’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. It has a trailing four-quarter negative earnings surprise of 205.7%, on average.
Papa John's International, Inc. (PZZA - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3.
PZZA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. It has a trailing four-quarter negative earnings surprise of 0.7%, on average. Earnings for the to-be-reported quarter are expected to decline 13.3% year over year.
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Shake Shack (SHAK) to Report Q4 Earnings: What's in Store?
Shake Shack Inc. (SHAK - Free Report) is scheduled to report fourth-quarter 2022 financial numbers on Feb 16, before the opening bell. In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate.
What to Expect
The Zacks Consensus Estimate is pegged at a loss of 11 cents, flat year over year. In the past seven days, the company’s earnings estimates have been stable. The Zacks Consensus Estimate for revenues is pegged at $238.5 million, indicating an increase of 17.3% from the prior-year actual figure.
Shake Shack, Inc. Price and EPS Surprise
Shake Shack, Inc. price-eps-surprise | Shake Shack, Inc. Quote
Let’s delve deeper to find out how the company’s top and bottom lines will shape up for this earnings season.
Factors at Play
Shake Shack’s top line is likely to have benefited from robust same store sales, store opening and digitalization. Robust Shack sales are likely to aid results. We expect Shack sales to increase 16.1% year over year to $227.4 million.
The company has been investing in digital transformation which is crucial for its growth. Recently, the company reported robust preliminary sales for the fourth quarter of fiscal 2022. Total revenues rose 17.3% year over year to $238.5 million. Same-Shack sales rose 5.1% year over year. In third-quarter fiscal 2022, same-Shack sales had increased 6.3% year over year.
However, high cost is likely to have negatively impacted the company’s bottom line. SHAK has been witnessing inflation throughout the supply chain. The company’s premium ingredients have witnessed a significant increase in a very short period. Higher expenses may weigh on margins in the quarter-to-be reported. We expect food and paper costs, labor and related expenses as well as other operating expenses to increase 16%, 18% and 21.6%, respectively, year over year.
What Does the Zacks Model Unveil?
Our proven model shows that Shake Shack is likely to beat earnings estimates this quarter. A stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Shake Shack has an Earnings ESP of +6.06% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter-to-be reported:
Ruth's Hospitality Group, Inc. currently has an Earnings ESP of +12.50% and a Zacks Rank #3.
RUTH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 19%, on average. Earnings for the to-be-reported quarter are expected to decline 5.9% year over year.
BJ’s Restaurants, Inc. (BJRI - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank #3.
BJRI’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. It has a trailing four-quarter negative earnings surprise of 205.7%, on average.
Papa John's International, Inc. (PZZA - Free Report) currently has an Earnings ESP of +2.10% and a Zacks Rank #3.
PZZA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. It has a trailing four-quarter negative earnings surprise of 0.7%, on average. Earnings for the to-be-reported quarter are expected to decline 13.3% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.