Shake Shack Tumbles After Inaugural Earnings Fail to Impress
Has Shake Shack Failed to Live Up to Expectations?
This article is for subscribers only.
Shake Shack Inc., the burger chain founded by restaurateur Danny Meyer, plunged as much as 8.5 percent in late trading after its inaugural earnings report failed to live up to investors’ lofty expectations.
The stock, which had more than doubled since its January initial public offering, dropped as low as $42.90 in after-market trading on Wednesday. While fourth-quarter revenue topped analysts’ estimates, the company predicted that same-store sales would grow in the low-single digits. That may not have been enough to satisfy shareholders after the stock’s surge, said Sharon Zackfia, analyst at William Blair & Co. in Chicago.