For 2019, analysts are expecting Shake Shack (SHAK) to post EPS of $0.60, which implies a fall of 16.2% from $0.71 in 2018. The decline in EBIT margin will likely lower Shake Shack’s EPS in 2019. However, some of the declines are expected to be offset by revenue growth and a lower effective tax rate.
For 2019, analysts forecast Shake Shack to post revenue of $577.4 million, which represents a rise of 25.7% from $459.3 million in 2017. The revenue growth will likely be driven by SSSG (same-store sales growth), which is expected to be in the range of 0% to 1%, and new restaurant openings. The company’s management plans to open 36–40 company-owned restaurants and 16–18 franchised restaurants during the period.
Shake Shack is focusing on the introduction of new menu items, enhancing customers’ experience through the implementation of digital advancements, and automating its administrative process through “Project Concrete” to allow employees to focus on customers’ experience to drive its SSSG.
The company’s EBIT margin is expected to fall from 7.7% in 2018 to 5.1%. The lower restaurant-level operating profit margin, higher G&A (general and administrative) expenses, an increase in pre-opening costs due to the higher number of restaurant openings, and higher depreciation expenses are expected to lower the company’s EBIT margin. Analysts are expecting Chipotle’s effective tax rate for 2019 to be at 28.1% compared to 29.4% in 2018.
“Bond King” and DoubleLine founder Jeffrey Gundlach hosted a webcast called “Highway to Hell” on March 12.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.