Shake Shack Serves Up Mixed Q1 Results With Strong Sales Growth, Stock Rises
Portfolio Pulse from Shivani Kumaresan
Shake Shack Inc (NYSE:SHAK) reported Q1 FY24 sales growth of 14.7% to $290.5 million, slightly missing analyst estimates. System-wide sales and Same-Shack sales increased, with operating income at $0.0 million, improving from a loss. Cash and equivalents stood at $260.2 million, with operating cash flow at $30.6 million. Adjusted EBITDA rose 30.2%, and the company opened eight new Shacks. Adjusted EPS was $0.133, beating estimates. SHAK shares rose 4.6% to $108.16.
May 02, 2024 | 3:25 pm
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Shake Shack reported a 14.7% increase in Q1 FY24 sales to $290.5 million, slightly below estimates, with a significant improvement in operating income and a strong growth in adjusted EBITDA. The company also beat EPS estimates and opened eight new locations, driving a 4.6% increase in stock price.
The positive earnings report, especially the beat on adjusted EPS and the opening of new locations, indicates strong operational performance and growth prospects for Shake Shack. Despite slightly missing sales estimates, the overall positive financial health and expansion strategy likely contributed to the stock's rise. The increase in stock price reflects investor confidence in the company's growth trajectory.
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