These Analysts Increase Their Forecasts On Shake Shack After Upbeat Earnings

Shake Shack Inc. SHAK reported better-than-expected fourth-quarter financial results on Thursday.

Sales grew 20% Y/Y to $286.2 million, beating the analyst consensus estimate of $280.3 million. Adjusted pro forma EPS was 2 cents for the quarter, beating the consensus estimate of 1 cent, according to data from Benzinga Pro.

The company opened 15 new domestic company-operated Shacks and 9 new licensed Shacks, including locations in Mexico and Thailand.

For FY24, the company projects revenue of $1.21 billion-$1.25 billion vs. consensus of $1.246 billion and Shack level operating margin of 20%-21%. For the first quarter, the company projects revenue of $288.4 million-$292.8 million vs. consensus of $289.8million and, Shake Shack level operating margin of 19%-19.50%.

The company expects to open 80 new Shacks system-wide, with 40 domestic company-operated and 40 licensed outlets in FY24.

Shake Shack shares gained 26% to close at $98.40 on Thursday.

These analysts made changes to their price targets Shake Shack after the company reported quarterly results.

• TD Cowen boosted the price target on Shake Shack from $73 to $91. TD Cowen analyst Andrew Charles maintained a Market Perform rating.
• Wedbush increased the price target on Shake Shack from $80 to $100. Wedbush analyst Nick Setyan maintained a Neutral rating.

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