Shake Shack soars in second quarter

The burger chain based in New York Metropolis says it now expects gross sales at places open no less than 24 months to rise within the mid- to high-single digit proportion for the yr. That is up from the earlier forecast of a rise within the low- to mid-single digit proportion.

Shake Shack is set to report second quarter earnings after the market close on Monday.

Shake Shack’s second-quarter net income was $1.1 million, or 8 cents per share. Jefferies Group reaffirmed a hold rating and issued a $60.00 price objective on shares of Shake Shack in a research note on Friday, June 26th.

Still, Shake Shack’s high-quality, ethically sourced food and excellent customer service have drawn many comparisons between it and Chipotle, which has seen business explode in recent years. Then comes Jason’s Deli, with annual revenue of $2.6 million, Panera Bread and McDonald’s, whose restaurants bring in an average $2.5 million, and Krispy Kreme, at $2.4 million. The company, which has 37 company-operated U.S. shops, attributed the results to menu price increases, the return of crinkle-cut fries, a shake special and strong results from Las Vegas and Chicago. In trading after hours on Monday, shares were up by 10%.

Shake Shack burger, fries, and beverage are arranged for a photograph at a different… The company has a market cap of $827 million and the number of outstanding shares have been calculated to be 12,058,000 shares.

Shack Shake’s stock is up 250% since it went public in late January with an IPO price of $21. Flash forward three months, and it appears that Shake Shack’s answer has changed: Monday afternoon, the company revealed plans to open not 10 but 12 domestically operated Shacks this year.

Morgan Stanley’s John Glass downgraded his rating on Shake Shack from Equal Weight to Underweight with a price target of $38 on July 7, citing the stock as overvalued.

In its filing, Shake Shack said this offering will facilitate the sale by existing shareholders, presumably company insiders who haven’t been able to sell their stakes following the IPO, as the company won’t receive any proceeds from the offering. Zacks cut Shake Shack from a “buy” rating to a “hold” rating in a research report on Tuesday, July 14th.