Why Shake Shack (SHAK) Stock Is Jumping Today

Shake Shack (SHAK) stock is rallying 11% after the restaurant operator reported higher-than-expected fourth-quarter earnings per share and noted that its Q4 same-restaurant sales had jumped 4.3% versus the same period a year earlier.

Additional Information About SHAK’s Q4 Results

The company generated Q4 EPS, excluding some items, of 26 cents, versus analysts’ average estimate of 25 cents. The company’s revenue jumped 14.8% year-over-year to $316.6 million, in line with the average estimate. And impressively for a somewhat mature company, its same-restaurant sales surged 4.3% YOY. Finally, its net income climbed 2.8% YOY to $9.3 million.

SHAK’s Comments 

“Our SSS% trends held in January despite the approximate (1.5 to 2 percentage points) impact from weather and the Los Angeles wildfires, and we have confidence in our strategies to drive continued sales and profitability growth this year,” said CEO Rob Lynch in a statement.

“We opened 76 new Shacks worldwide in 2024 and are excited about our new target Company-operated footprint of at least 1,500 Shacks,” the CEO added.

More Information About SHAK

SHAK is changing hands at an elevated forward price-to-earnings ratio of 88.5 times.

Analysts on average expect its EPS to climb to $1.18 this year from 92 cents in 2024.

In the last month, the shares have gained 2%, while they have advanced 1% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.