What Analysts Recommend for CMG, PNRA, and SHAK after 4Q16 Results
Of the 34 analysts that follow Chipotle Mexican Grill (CMG), 26.5% are recommending a “buy.”
In 4Q16, Shake Shack (SHAK) posted adjusted EPS of $0.09, a growth of 12.5% from $0.08 in 4Q15.
The better-than-expected 4Q16 earnings and strong 2017 outlook for Panera Bread (PNRA) appears to have increased investor confidence.
In 2017, analysts are expecting Chipotle Mexican Grill (CMG) to post revenue of $4.6 billion, a growth of 17.3% from $3.9 billion in 2016.
In 4Q16, Panera Bread (PNRA) posted an EBIT margin of 10.3% compared with 10.9% in 4Q15.
Revenue growth drives earnings and raises investor confidence, which should ultimately push stock prices upward.
With systemwide SSSG of 1.6%, Shake Shack (SHAK) outperformed the other two companies under review in 4Q16.
In this part of our series, we’ll discuss unit growth, a key growth driver for fast casual restaurants.
Since the beginning of 2017, Panera stock and Chipotle stock have risen 17.4% and 8.0%, respectively.
SHAK’s 4Q16 same-store sales growth (or SSSG) was lower than analysts’ estimate of 3.2%.
On March 6, 2017, Shake Shack (SHAK) was trading at $32.19 per share.
In 4Q16, Shake Shack (SHAK) posted EBIT (earnings before interest and tax) of $5 million, which translates to EBIT margins of 6.8% compared to a 4Q15 margin of 8.7%.
In 4Q16, SHAK posted EPS of $0.09, which represents a growth of 12.5% from $0.08 in 4Q15.
Shake Shack (SHAK) has posted SSSG of 1.6% against analysts’ estimate of 3.2% and 4Q15 SSSG of 11%.
At the end of 4Q16, Shake Shack (SHAK) operated 114 restaurants, which includes 64 company-owned restaurants, 43 international franchised restaurants, and seven international franchised restaurants.
In 4Q16, SHAK’s company-owned restaurant sales accounted for 96.8% of its total revenues.
Since the announcement of 4Q16 earnings on March 1, 2017, Shake Shack (SHAK) stock has fallen 10.9%.
Of the 18 analysts that cover Domino’s Pizza (DPZ), 33.3% gave the company a “buy” recommendation and 66.7% gave it a “hold” recommendation. There were no “sell” recommendations.
Domino’s Pizza (DPZ) posted EBIT of $150.7 million for 4Q16, which represents an EBIT margin of 18.4% compared to 17.4% in 4Q15.
In 4Q16, Domino’s Pizza (DPZ) posted earnings per share of $1.48, which represents 28.7% growth from its EPS of $1.15 in 4Q15.