Following Shake Shack’s robust fourth-quarter earnings report, the company’s shares surged by 26% on Thursday, reaching a new 52-week high of $98.90. Over the past 12 months, the stock has risen by over 67%.
Here’s a breakdown of the company’s performance during the period, compared with estimates from LSEG, formerly known as Refinitiv:
- Earnings per share: 2 cents versus the expected 1 cent
- Revenue: $286.2 million compared to the expected $280.3 million
During the final three months of 2023, Shake Shack reported a net income of $6.8 million, a significant improvement from the $8.1 million loss incurred in the previous year. Earnings per share soared to a 15-cent profit from a 20-cent loss in the same period a year ago.
After adjusting for one-time items, Shake Shack reported earnings per share of 2 cents.
The burger chain also experienced a remarkable 20% increase in revenue year over year and expanded its footprint by opening 15 new restaurants during the quarter.
Looking ahead to 2024, Shake Shack anticipates total revenue growth of 11% to 15% and plans to open 80 new restaurants. This expansion would bring the total number of locations, including both company-owned and licensed establishments, to nearly 600, marking more than double the footprint compared to five years ago.
CEO Randy Garutti expressed optimism about the company’s performance, stating in a letter to shareholders, “We ended the year on a high note, with positive traffic in the fourth quarter through the success of our sales-driving strategies and continued margin expansion.
Our leadership teams are energized and excited as we go on our 2024 Strategic Priorities and target another year of strong growth and margin expansion.”
