Shake Shack shares sink after issuing preliminary results, guidance

Shake Shack

13/01/2025 19:25

** Shares in Shake Shack  SHAK.N  down 5.4% on Monday after
the restaurant chain announced preliminary results for Q4 ended
Dec. 25 and 2025 financial outlook and long-term targets
    ** SHAK, which unveiled the numbers ahead of a presentation
on Monday at the 27th Annual ICR Conference today in Orlando,
said same-store sales rose by 4.3% in Q4 while it forecast FY
2025 same-store sales of 3%  
    ** SHAK said Q4 total rev grew 14.8% to $328.7 million while
2024 rev was $1.3 billion up from the $1.088 billion it reported
a year-ago, as per LSEG data
    ** It said that restaurant margins grew nearly 300 basis
points to 22.7% of SHAK sales to highest level for Q4 since
2017, while it forecast 2025 restaurant margins of ~22%  
    ** For FY2025, SHAK sees total revenue y/y growth of 16%-18%
to $1.45-$1.48 bln range, forecast adj EBITDA growth of 14%-20% 
 
    ** SHAK announced 3-year target for total rev growth in
low-teens % range, system-wide unit growth in low-teens %,
restaurant-level profit margin at least 22%, adjusted EBITDA
growth in the range of low to mid-teens % range 
    ** SHAK shares last traded at $121.52 after falling as low
as $117.60 during the session vs median PT of $140, as per LSEG,
which shows 24 analyst ratings: 6 'strong buy,' 5 'buy,' 12
'hold' and 1 'sell' recommendation 
    ** SHAK down ~6.4% YTD after rising ~75% in 2024 compared
with S&P 600 restaurant index  .SPSMCREST  drop of ~1% so far
this year and a 16.4% gain in 2024

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))