Shake Shack Shares Dumped as Delivery Woes Continue

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXMPED041FD_M.jpg
© Reuters. © Reuters.

By Kim Khan

Investing.com – Shake Shack (NYSE:) investors are shedding shares Tuesday as it looks like problems getting Shake Shack burgers will persist.

Shares fell 14% in afternoon trading as the company’s latest guidance spooked the market and the company also said it hasn’t solved its home delivery problems yet.

Shake Shack reported fourth-quarter of 6 cents per share, excluding items, and sales of $151.44 million.

Analysts were looking for a loss of a penny per share and sales of $153 million, according to forecasts compiled by Investing.com.

And looking ahead, it sees 2020 revenue of $712 million to $720 million, well below the $737 million analysts were looking for, according the S&P Capital IQ consensus.

The New York City-based fast-casual chain expects “potentially significant volatility in the delivery channel throughout much of 2020,” Chief Financial Officer Tara Comonte said during an earnings call on Monday.

It moved last year to an exclusive partnership with third-party platform Grubhub.

The company, known for its “roadside” style milkshakes and burgers, is also facing “potentially significant headwinds” due to the coronavirus outbreak in China, where it has seven stores, and concerns throughout the rest of Asia.

— Reuters contributed to this report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment