Shake Shack, Inc.Short
SHAK under $60 = $48. Another disappointing earnings report
Updated
Shake Shack (SHAK) came out with a quarterly loss of $0.11 per share (after adjusted -$0.25). At what point will these companies stop blaming Omicron/ Covid for their shortfall of analysts estimates? Only 250 locations and forward guidance is so bad the company stated: “Given the substantial uncertainty and resulting material economic impact caused by the COVID-19 pandemic, the Company is not providing full guidance for the fiscal year ending December 28, 2022.” They're saying total revenue of $196 million to $201.4 million. The estimate was for higher, at $211 million. And then also for the first quarter projection, same Shack sales, high single digits to low double digits versus 2021, the estimate was for about 15%. So those low double digits not cutting it for them. Shake Shack said it lost $9.7 million, or 25 cents a share, in the fourth quarter, compared with a loss of $19.4 million, or 50 cents a share, in the year-ago period. Adjusted for one-time items, the company lost 11 cents a share in the quarter. In a soon to be anticipated higher interest rate environment, hyperinflation of goods, services, wages and input costs the prospects of a profitable company are not promising. SHAK will be shook below it's IPO price in no time.
Trade closed manually
Closed trade on the $7 drop today. Ultimately stock goes lower but I am expecting the market to bounce.
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