Yahoo Finance StockBeat: Shake Shack Hits Year High as International Growth Beefs up Earnings
Investing.com - Shake Shack (NYSE:SHAK) sizzled to a 52-week high Tuesday after delivering an earnings beat and raising guidance as burger-munching customers abroad flocked to the trendy burger chain.
The company also inked a new partnership with delivery company GrubHub (NYSE:GRUB).
Shake Shack (NYSE:SHAK) shares were up 16.3% at 2:01 p.m. ET (18:02 GMT) after hitting a 52-week high of $84.96 earlier in Tuesday's session. The shares are up nearly 88% this year.
For full-year 2019, the company guided revenue in the range of $585 to $590 million, up from its prior guidance of $576 to $582 million, but below estimates of $591.5 million. Shake Shack (NYSE:SHAK) sales growth is forecasted to grow about 2%, compared with estimates of 2.2% growth.
The upgraded guidance comes as earnings and revenue topped consensus estimates from Investing.com as the company’s efforts to expand its geographical footprint beefed up performance.
Shake Shack reported second-quarter earnings of 27 cents a share on revenue of $152.7 million, above consensus estimates for earnings of 22 cents a share on revenue of $149.5 million.
During the quarter, the company opened 11 domestic company-operated Shacks, two domestic licensed Shacks, and six international licensed Shacks, which included its first Shacks in the Philippines and Singapore, at the Jewel Changi Airport.
Shake Shack’s better-than-expected quarterly growth and delivery partnership with Grubhub drew praise from Wall Street analysts, several of which raised their price targets on the burger chain's shares.
Wedbush raised its target on shares of Shake Shack to $75 from $70, JPMorgan to $69 from $58, SunTrust to $86 from $70 and Jefferies to $68 from $55.
The consensus estimate among analysts polled by Investing.com is $69.60.
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