Shake Shack Inc. (NYSE
HAK) is a popular fast-casual restaurant chain known for its burgers, hot dogs, and milkshakes. Founded in 2004, the company has grown significantly, with locations across the United States and internationally. Shake Shack competes with other fast-casual and quick-service restaurants like Five Guys, In-N-Out Burger, and McDonald's.
Shake Shack is set to release its quarterly earnings on February 20, 2025, before the market opens. Analysts expect the company to report earnings per share (EPS) of $0.25, a significant 1150% increase from the same period last year. This growth is driven by projected revenues of approximately $329 million, reflecting a 14.8% year-over-year increase.
The consensus EPS estimate for Shake Shack has been revised upward by 7.1% over the past month, indicating a positive reassessment by analysts. Such revisions are important as they often predict potential investor behavior and are closely linked to the short-term price performance of a stock. The actual earnings results could significantly influence Shake Shack's stock price, with potential increases if the earnings surpass expectations.
Shake Shack's financial metrics reveal a high valuation relative to its earnings, with a price-to-earnings (P/E) ratio of approximately 509.76. The company's price-to-sales ratio is about 3.67, suggesting investors are willing to pay $3.67 for every dollar of sales. Additionally, the enterprise value to sales ratio is around 4.08, reflecting the company's total valuation in relation to its sales.
Shake Shack's financial health is further highlighted by its enterprise value to operating cash flow ratio of approximately 21.88, providing insight into its cash flow generation relative to its valuation. The company has a debt-to-equity ratio of about 1.76, indicating its leverage level, and a current ratio of approximately 2.01, suggesting a strong ability to cover short-term liabilities with short-term assets.
