SHAKE SHACK Reports Double-Digit Revenue Growth in Q2 FY2023.
August 5, 2023
🌥️Earnings Overview
On August 3 2023, SHAKE SHACK ($NYSE:SHAK) reported their financial results for the second quarter of FY2023, with total revenue at USD 271.8 million, displaying a 17.8% growth from the same quarter of the prior year. Net income for the period was USD 7.0 million, contrasting with a net loss of USD 1.2 million in the same quarter of the previous year.
Price History
On Thursday, SHAKE SHACK reported double-digit revenue growth in the second quarter of their fiscal year 2023. The stock opened at $71.3 and closed at $74.7, representing a 0.5% decrease from its previous closing price of $75.0. Bolstered by the strong financial performance, Shake Shack’s Chief Financial Officer, Tara Comonte, commented that the company is “positioned for long-term success.” She went on to say that Shake Shack will continue to focus on providing customers with an enjoyable experience and quality food options.
The company appears to be in a good position going forward as it looks to capitalize on its double-digit revenue growth and same-store sales increase. Shareholders will likely be pleased with the company’s performance as it continues to focus on providing its customers with superior products and services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shake Shack. More…
| Total Revenues | Net Income | Net Margin |
| 991.43 | -7.33 | -0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shake Shack. More…
| Operations | Investing | Financing |
| 103.77 | -173.38 | -5.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shake Shack. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.53k | 1.1k | 10.3 |
Key Ratios Snapshot
Some of the financial key ratios for Shake Shack are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.1% | -1.0% | 0.0% |
| FCF Margin | ROE | ROA |
| -5.9% | 0.1% | 0.0% |
Analysis
At GoodWhale, we recently analyzed the wellbeing of SHAKE SHACK and looked at their financial and business aspects. According to our Risk Rating, SHAKE SHACK is a medium risk investment. We have detected three risk warnings in their income sheet, balance sheet, and cashflow statement. Our analysis of these risk warnings is valuable to investors who are looking for an objective opinion on SHAKE SHACKâs wellbeing. If you want to check out our full report, you can register with us and view it online. More…
Peers
In the fast food industry, there is always stiff competition between the top companies. This is no different for Shake Shack Inc, a well-known American chain of hamburger restaurants. Some of their main competitors include BT Brands Inc, Doutor Nichires Holdings Co Ltd, and Kyochon Food&Beverage Co Ltd. While each company has its own unique selling points, they all share one common goal: to be the best in the industry.
– BT Brands Inc ($NASDAQ:BTBD)
PBT Brands Inc is a company that manufactures and sells a variety of products, including food, beverages, and health and beauty products. The company has a market cap of 12.92M as of 2022 and a return on equity of 2.15%. PBT Brands is a publicly traded company on the NASDAQ Stock Exchange.
– Doutor Nichires Holdings Co Ltd ($TSE:3087)
Doutor Nichires Holdings Co Ltd is a Japanese food and beverage company that operates a chain of coffee shops across Japan. As of 2022, the company had a market capitalization of $72.16 billion and a return on equity of 2.52%. The company’s coffee shops offer a range of coffee and tea beverages, as well as light meals such as sandwiches and salads.
– Kyochon Food&Beverage Co Ltd ($KOSE:339770)
Kyochon Food & Beverage Co Ltd is a South Korean company that specializes in chicken products. The company has a market cap of 248.33B as of 2022 and a return on equity of 11.08%. Kyochon was founded in 1991 and has since grown to become one of the largest chicken chains in South Korea. The company has over 1,000 outlets in South Korea and also has a presence in China, the Philippines, and the United States. Kyochon’s product offerings include chicken wings, drumsticks, and whole chickens. The company also offers a variety of side dishes and desserts.
Summary
SHAKE SHACK‘s second quarter of FY2023 saw a strong performance, with total revenue up 17.8% on the same quarter of the prior year, and net income of USD 7.0 million, compared to a loss of USD 1.2 million in the same period of the prior year. This indicates that SHAKE SHACK is on a strong growth trajectory and could present an attractive investment opportunity for those looking for exposure to the restaurant sector. Investors should take into account the company’s competitive landscape, financial health and risk profile before investing. Additionally, further analysis into the potential upside of SHAKE SHACK’s strategy, consumer trends and macroeconomic environment could provide additional insight to its potential as an investment.
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