Shake Shack (NYSE:SHAK) shares jumped nearly 22% today after the restaurant operator delivered robust fourth-quarter results. With a 20% year-over-year jump, revenue of $286.2 million outperformed estimates by $5.75 million. Similarly, EPS of $0.02 exceeded expectations by $0.01.
During the quarter, system-wide sales rose by 21.4%, and licensing revenue ticked up by 21.7%. Importantly, SHAK churned out a net income of $6.8 million compared to a net loss of $8.1 million in the year-ago period. For the full year, system-wide sales increased by 23.5% to $1.7 billion, and same-shack sales increased by 4.4%. Further, the company opened 41 self-operated shacks in the domestic market and 44 new licensed shacks.
Notably, SHAK has now surpassed 500 units globally while managing to expand its adjusted EBITDA by more than 80% in 2023. For Fiscal Year 2024, the company anticipates revenue in the range of $1.21 billion to $1.25 billion. Adjusted EBITDA for the year is expected to be between $160 million and $170 million. For the upcoming quarter, SHAK aims to generate revenue of $288.4 million to $292.8 million.
What Is the Price Target for SHAK?
Today’s price gains come on top of a nearly 21% jump in the company’s share price over the past three months. Overall, the Street has a Moderate Buy consensus rating on Shake Shack, alongside an average price target of $77.43.
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