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Shake Shack shares shook by sales shock, sliding 30%

New York Post·Lisa Fickenscher·25 days ago
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Shake Shake’s shares tumbled 30% on Thursday after it blamed disappointing financial results on bad weather, high beef prices and tourism declines. The Big Apple-based burger chain missed Wall Street’s estimates for sales and profits in the quarter ended April 1, losing $290,000 compared to last year when it posted a $4.25 million profit. Revenues rose by 14.3% to $367 million, but Wall Street had expected $371 million.  Bitter cold and rainy weather in January and March kept diners away, according to Shake Shack. Bad weather in January and March kept diners away, Shake Shake said. Stephen Yang for NY Post “We came into this quarter with a significantly higher sales rate than … what the outcome was. And that was primarily [due to] the weather,” chief executive Rob Lynch lamented on an earnings call with analysts. The company also flagged beef inflation — rising by a “low-teens percentage”– and fewer tourists visiting its home city as impacting its financial performance.…

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