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.
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the substantial uncertainty and subsequent material economic impact caused by the COVID-19 pandemic, the company has withdrawn its guidance for fiscal 2020.
Walt Disney (DIS): After a tough FY20, the pandemic is likely to take a toll on operations next year too
The Walt Disney Company (NYSE: DIS) had a tough time in fiscal year 2020 with the COVID-19 pandemic bringing its operations to a standstill like never before. The company incurred
The recent optimism about economic recovery waned slightly this week after jobless claims increased more-than-expected to about 778,000 amid concerns over a resurgence in coronavirus cases. With the healthcare system
Yunji Inc. (NASDAQ: YJ) Q3 2020 earnings call dated Nov. 26, 2020 Corporate Participants: Kaye Liu -- Investor Relations Director Shanglue Xiao -- Chairman of the Board of Directors and Chief Executive Officer Chen