Wall Street analysts forecast that Shake Shack (SHAK) will report quarterly earnings of $0.36 per share in its upcoming release, pointing to a year-over-year increase of 38.5%. It is anticipated that revenues will amount to $402.42 million, exhibiting an increase of 22.4% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 2.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Shake Shack metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Revenue- Licensing' reaching $15.39 million. The estimate indicates a change of +27.7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Shack sales' of $387.25 million. The estimate indicates a change of +22.3% from the prior-year quarter.
The consensus estimate for 'Shack system-wide sales' stands at $618.01 million. The estimate indicates a year-over-year change of +23.4%.
According to the collective judgment of analysts, 'Revenue- Licensing Revenue- Sales-based royalties' should come in at $14.91 million. The estimate indicates a change of +27.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Same-Shack sales growth' will likely reach 2.1%. Compared to the current estimate, the company reported 4.3% in the same quarter of the previous year.
The average prediction of analysts places 'Shack counts - Company-operated' at 374 . The estimate is in contrast to the year-ago figure of 329 .
Analysts expect 'Shack counts - Licensed' to come in at 288 . The estimate compares to the year-ago value of 250 .
The consensus among analysts is that 'Shack counts - System-wide' will reach 662 . The estimate is in contrast to the year-ago figure of 579 .
Based on the collective assessment of analysts, 'Shack counts - International licensed' should arrive at 239 . The estimate compares to the year-ago value of 206 .
Analysts forecast 'Shack counts - Domestic licensed' to reach 49 . Compared to the present estimate, the company reported 44 in the same quarter last year.
Analysts predict that the 'Average weekly sales' will reach $77.33 . The estimate is in contrast to the year-ago figure of $79.00 .
View all Key Company Metrics for Shake Shack here>>>
Shake Shack shares have witnessed a change of +2.4% in the past month, in contrast to the Zacks S&P 500 composite's -0.3% move. With a Zacks Rank #5 (Strong Sell), SHAK is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Shake Shack, Inc. (SHAK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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