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The Ratings Game: Shake Shack isn’t worried about cannibalization, but some analysts are

Shake Shack Inc. shares closed Friday down nearly 14% after the burger chain reported a same-store sales decline that has some analysts worried about cannibalization as the company expands.

Same-store sales, or “same-Shack” sales, as the company calls them, slipped 0.7% in the third quarter, compared with the FactSet guidance for 1.1% growth.

Adjusted earnings per share of 21 cents exceeded the 13-cents FactSet consensus. And revenue of $119.6 million beat the FactSet guidance of $117.0 million.

Read:Starbucks better-than-expected same-restaurant sales may not be sustainable

“We expect same-store sales to remain negative through early ’19, until a lift from digital sales offsets sales cannibalization from new stores,” wrote SunTrust Robinson Humphrey analysts.

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