Categories AlphaGraphs, Consumer, Earnings

Shake Shack (SHAK) slips to a loss in Q1 but beats estimates

Shake Shack Inc. (NYSE: SHAK) reported its financial results for the quarter ended March 25, 2020, on Monday after the bell. The bottom line exceeded analysts’ expectations while the top-line missed consensus estimates.

Shake Shack slipped to a loss in the first quarter of 2020 from a profit last year due to the inclusion of a non-cash asset impairment charge. The company experienced weakness in sales deleverage resulting from the impact of COVID-19, which was partially offset by food and paper costs.

Shack sales rose by 7.4% due primarily to the opening of 38 new domestic company-operated Shacks, partially offset by a decline in same-Shack sales. As of March 25, 2020, 12 Shacks were temporarily closed due to COVID-19.

Shake Shack (SHAK) Q1 2020 earnings review

Same-Shack sales decreased by 12.8% due to the adverse impact of reduced traffic during the second half of March 2020 resulting from the coronavirus pandemic. The decrease was primarily driven by a 14.9% decrease in guest traffic partially offset by a combined increase of 2.1% in price and sales mix.

Given the substantial uncertainty and subsequent material economic impact caused by the COVID-19 pandemic, the company has withdrawn its guidance for fiscal 2020.

Past Performance

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top