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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 2023 financial numbers on Feb 15, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 88.9%.
What to Expect?
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at breakeven. In the prior-year quarter, it reported an adjusted loss per share of 6 cents. The Zacks Consensus Estimate for revenues is pegged at $279.8 million, suggesting 17.3% growth 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 results are likely to be aided by robust same-store sales, store opening and digitalization. SHAK is mainly focusing on digital investment to improve the Kiosk experience through greater omnichannel adoption and long-term guest connection with all the new features and offers made available on the platform. These updates are expected to have enhanced guest experience and convenience, resulting in higher average checks. We expect Shack sales to increase 16.5% from the prior-year levels to $267.9 million. Our model predicts same-Shack sales to increase 3.5%.
However, high costs are likely to have negatively impacted the company’s bottom line. Its 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 project food and paper costs, labor and related expenses as well as other operating expenses to increase 6%, 3.2% and 27.6%, respectively, from the year-earlier actuals.
Our proven model doesn’t conclusively predict 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 not 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 -207.04% and a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail - Restaurants industry that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
PLAY’s earnings for the quarter under review are expected to increase 42.5%. It reported better-than-expected earnings in three of the trailing four quarters and in line on the remaining one occasion, the average surprise being 34.5%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank of 2.
DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3.
JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.
Image: Bigstock
Shake Shack (SHAK) to Report Q4 Earnings: What's in Store?
Shake Shack Inc. (SHAK - Free Report) is scheduled to report fourth-quarter 2023 financial numbers on Feb 15, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 88.9%.
What to Expect?
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at breakeven. In the prior-year quarter, it reported an adjusted loss per share of 6 cents. The Zacks Consensus Estimate for revenues is pegged at $279.8 million, suggesting 17.3% growth 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 results are likely to be aided by robust same-store sales, store opening and digitalization. SHAK is mainly focusing on digital investment to improve the Kiosk experience through greater omnichannel adoption and long-term guest connection with all the new features and offers made available on the platform. These updates are expected to have enhanced guest experience and convenience, resulting in higher average checks.
We expect Shack sales to increase 16.5% from the prior-year levels to $267.9 million. Our model predicts same-Shack sales to increase 3.5%.
However, high costs are likely to have negatively impacted the company’s bottom line. Its 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 project food and paper costs, labor and related expenses as well as other operating expenses to increase 6%, 3.2% and 27.6%, respectively, from the year-earlier actuals.
Shake Shack, Inc. Price and EPS Surprise
Shake Shack, Inc. price-eps-surprise | Shake Shack, Inc. Quote
What Does the Zacks Model Unveil?
Our proven model doesn’t conclusively predict 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 not 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 -207.04% and a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail - Restaurants industry that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PLAY’s earnings for the quarter under review are expected to increase 42.5%. It reported better-than-expected earnings in three of the trailing four quarters and in line on the remaining one occasion, the average surprise being 34.5%.
Darden Restaurants, Inc. (DRI - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank of 2.
DRI is expected to register 12.8% growth in earnings for the quarter to be reported. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 4.2%.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank of 3.
JACK’s earnings for the to-be-reported quarter are expected to decline 3%. It reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the average surprise being 10.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.