In the second quarter, analysts expect Shake Shack’s (SHAK) revenue to rise 21.5% YoY (year-over-year) to $111.0 million from $91.3 million. The addition of new restaurants in the last four quarters could boost the company’s revenue.
In Q2 2018, Shake Shack operated 20 more company-owned restaurants, one more domestic licensed restaurant, and 13 more international licensed restaurants than it did in Q2 2017. These new restaurants are expected to drive the company’s revenue.
Shake Shack is focusing on menu innovations, training employees, implementing technology, and improving customer loyalty to drive its SSSG (same-store sales growth). In the second quarter, the company introduced Veggie Shack locations in New York, California, and Texas, and a barbecue menu as a limited time offering. Shake Shack has been making investments to improve its core financial and operational systems through Project Concrete. The company has been using its mobile app as a key channel to reward loyal customers and provide a more personalized experience.
Shake Shack expects revenue of $446 million–$450 million and SSSG of 0%–1% this year, and plans to open 32–35 new domestic company-operated restaurants and 16–18 international franchised restaurants. In the next four quarters, analysts expect Shake Shack’s revenue to rise 26.9% YoY to $483.8 million from $381.2 million. Next, we’ll look at analysts’ EPS estimates for SHAK in the second quarter.