SHAKE SHACK Reports Strong Earnings for Q2 FY2023
August 26, 2023
☀️Earnings Overview
On August 3rd 2023, SHAKE SHACK ($NYSE:SHAK) released their earnings report for the second quarter of their fiscal year 2023, which ended on June 30th 2023. Total revenue rose 17.8% year-over-year to USD 271.8 million, while net income was USD 7.0 million – a stark contrast to the loss of -1.2 million from the same period in the prior year.
Market Price
On Thursday, Shake Shack reported strong earnings for the second quarter of fiscal year 2023. The stock opened at $71.3 and closed at $74.7, down by 0.5% from the previous closing price of 75.0. The company also plans to launch a mobile order ahead app later this year, which will be available in all of its US locations.
These initiatives are expected to increase sales and help the company grow in the coming quarters. The company plans to focus on digital initiatives and international growth in order to continue its success in the future. 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 have conducted an analysis of Shake Shack‘s wellbeing. Our Star Chart shows that Shake Shack has an intermediate health score of 5/10, and is likely to be able to safely ride out any crisis without the risk of bankruptcy, considering its cashflows and debt. We have found that Shake Shack is strong in growth, profitability, and medium in asset, but weak in dividend. As a result, we have classified Shake Shack as a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe that investors who are looking for high potential growth with some risk involved would be interested in such a company. Shake Shack’s strong growth rate and mid-level health score makes it an attractive option for those looking for mid-high risk investments. 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
Investors are pleased with the strong results from Shake Shack‘s second quarter of 2023. Total revenue grew by 17.8% compared to the same period last year, bringing in USD 271.8 million. Net income for the quarter was USD 7.0 million, a drastic improvement from the -1.2 million loss reported in the same quarter last year.
Shake Shack’s impressive performance reflects the company’s commitment to providing a high-quality customer experience. As a result, shares of Shake Shack have risen since the release of the earnings report, providing a positive outlook for investors.
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