Shake Shack slips on slower growth-rate forecast

(SHAK) on Wednesday reported fourth-quarter earnings of $3.9 million. Shake Shack had a return on equity of 7.12% and a net margin of 3.97%. Full-year profit views are for Shake Shack earn $0.46 in current year and drop profits by almost 43.75% over last year's earnings of $0.32. As a percentage of total revenue, general and administrative expenses decreased to 11.3 percent for the fourth quarter of 2016 from 15 percent in the fourth quarter last year, primarily due to $0.8 million of expense recognized during the prior year quarter related to a legal settlement and increased levels of Shack sales. Shake Shack has a 1-year low of $30.90 and a 1-year high of $43.99. It closed the session at $36.81 with a volume of 4449900 shares. Current ratio which is the relationship between current assets and current liabilities, indicating the liquidity of a business is calculated as 1.00. The stock has a 50 day moving average price of $35.61 and a 200-day moving average price of $35.36. The shares were sold at an average price of $36.38, for a total transaction of $291,040.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The disclosure for this sale can be found here.

Shares slid 4.3% in after-hours trading. Insiders own 44.69% of the company's stock. Buy rating has been given by 8 analysts to the company stock whereas no analyst given UNDERPERFORM rating to stock and no analyst given HOLD rating. The price moves in Shake Shack Inc. post earnings have produced an average increase of 0.6% and an average decrease of -4.59% on next day and seventh day, sequentially. Guggenheim Capital LLC boosted its stake in Shake Shack by 29.5% in the fourth quarter. LLC now owns 2,000,102 shares of the company's stock worth $69,344,000 after buying an additional 279,342 shares during the period. If you are viewing this report on another website, it was copied illegally and republished in violation of United States & global trademark & copyright law. The original version of this story can be viewed at Tracking most recent quarter period, Price to book (P/B) ration is at 6.09 and Price to cash per share ration is at 18.21.

Earnings Surprise: According to the earnings report released for Quarter Ending_Sep-16, The Company posted actual earnings of $0.15 per share whereas the Analysts projected earnings were $0.14 per share. Vetr lowered shares of Shake Shack from a "strong-buy" rating to a "hold" rating and set a $37.49 price target on the a research report on Thursday, November 10th. Barclays PLC reiterated an "equal weight" rating and issued a $40.00 target price on shares of Shake Shack in a research report on Friday, November 11th. Finally, J P Morgan Chase & Co reiterated a "hold" rating and issued a $38.00 target price on shares of Shake Shack in a research report on Wednesday, September 28th. Six analysts surveyed by Zacks expected $70.5 million. Tracking the stock price in relation to moving averages as well as highs and lows for the year might assist with evaluating future stock performance.

Randy Garutti, chief executive officer of Shake Shack, says, "I am proud of what our team has achieved in our second full year as a public company". The Company serves an American menu of burgers, hot dogs, crispy chicken, frozen custard, crinkle cut fries, shakes, beer and wine, among others.

  • Zachary Reyes