Shake Shack's Q3 Results Coming In: Here Are 3 Things to Watch
Shake Shack's Q3 results are in today. Last quarter, the fast-casual burger king exceeded expectations, reporting earnings of $0.09 per share against an estimated $0.03. Analysts are predicting a $0.07 EPS, though it could blow past estimates again. If it does, here are three factors that likely played a huge role.
1. Average Weekly Sales
Since only 16 of Shake Shack's 47 locations are included in the comparable base, its average weekly sales gives a more accurate depiction than its same-store sales. In the most recent quarter, Shake Shack's average weekly sales jumped 7.4% to $102k. Its average unit volumes is around $5M, about twice the size of fast-casual poster child Chipotle.
2. New menu offerings
Earlier this summer, Shake Shack rolled out the ChickenShack in its Brooklyn locations, selling out in just two days. If added as a permanent menu option, the ChickenShack could definitely boost sales. More menu expansion might come from partnerships with celebrity chefs, which would drive sales wild.
3. Insider selling
One reason Shake Shack's share price went down since August is because of insider selling. Shares went down 16% in a single day when major stockholders offered 4 million shares at $60. [Fool]