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the substantial uncertainty and subsequent material economic impact caused by the COVID-19 pandemic, the company has withdrawn its guidance for fiscal 2020.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

What to look for when Halliburton Company (HAL) reports Q4 2024 results?

Halliburton Company (NYSE: HAL) is expected to report fourth-quarter results on Wednesday, January 22, at 6:45 am ET. The oilfield service provider is currently recovering from a rough patch, marked

McCormick (MKC) is set to report Q4 2024 earnings results next week, a few points to note

Shares of McCormick & Company, Incorporated (NYSE: MKC) rose over 1% on Thursday. The stock has gained 12% in the past 12 months. The company is scheduled to report its fourth quarter

PNC Financial Q4 2024 profit more than doubles; revenue up 4%

The PNC Financial Services Group, Inc. (NYSE: PNC) reported a sharp increase in profit for the fourth quarter of 2024. Revenues grew by 4%. Net income attributable to common shareholders

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close