Shake Shack Stock Rises on Beating Profit Estimates and Achieving Record Sales
Sectors & Industries
August 5, 2024
Shake Shack shares surged after the company beat quarterly profit and sales estimates, driven by higher prices and a 4% increase in same-store sales.
Traffic fell 0.8%, which the company blamed on slowing marketing in June, but turned positive in July. The company said challenges to traffic in the New York City area continued.
CEO Rob Lynch, who joined from Papa John's (PZZA) in May, said that Shake Shack achieved record-breaking sales, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and free cash flow. He affirmed that the chain is on track to meet its 2024 financial targets, including an annual revenue growth of 14% to 15%.
The chain reported a 16% revenue rise to over $316 million and projected positive free cash flow for the first time since 2017.
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