Habit Restaurants Inc

Shake Shack stated that it will double its company-operated store count over the next three years. It expects that number to triple in the next five years.

Shake Shack is trading at 3.3 times the average peer valuation, which may mean that the company is overvalued.

After Chipotle reported its 2Q15 earnings on July 21, its shares rose 2.2%, or $14.37, at $687 in the after-hours trading session.

Same-store sales indicate the sales at the existing location over a period of time—usually one year. Same-store sales are driven by traffic and ticket.

The market could be expecting Chipotle to have lower same-store sales growth in 2Q15. Chipotle’s recent two readings for food service growth on a three-month rolling average basis have trended downward.

In contrast to the Empire State index, the Philadelphia index’s headlining indicator, diffusion of current activity, stood at 15.2 in June. This represents a significant increase from May.

A typical Shake Shack restaurant is an average size of between 3,000 and 3,500 square feet. Currently, the average unit volume for Shake Shack’s company-owned stores is $4.6 million.

Management says that most of Shake Shack’s growth will come from developing new units. So, it’s important for an investor to understand where the unit growth is headed.

Chipotle’s average restaurant size is about 2,550 square feet. With an average restaurant volume of $2.4 million, the revenue per square foot comes to $969.

Jack in the Box management is focusing on developing current restaurants and same-store sales rather than unit growth. The results show in impressive same-store sales growth.

One new initiative that McDonald’s announced in March is that it will discontinue using chicken raised on antibiotics that could have an effect on humans.

Shake Shack’s (SHAK) adjusted EBITDA for the fourth quarter was $4.8 million. It grew 59% from $3 million in the corresponding quarter a year ago.

In a restaurant business, commodities are the most important input cost. Last quarter, Shake Shack increased its menu prices.

Shake Shack stated that it will double its company-operated store count over the next three years and that that number will triple in the coming five years.

During the fourth quarter of 2014, Shake Shack’s revenues increased to $34.8 million, which was 51.5% higher year-over-year.

Shake Shack (SHAK), a recently IPO’d burger restaurant, popped 118% on its first day of trading on January 30, 2015.

In 2010, Shake Shack had $19.5 million in revenues. Its revenues grew to $83 million over the four years ending in 2013. That’s a CAGR of 43%.

Revenues and overall growth are driven by same-store sales and unit growth. Investors closely track these units’ sales over a period of time.

Shake Shack (SHAK) calculates its AUV (average unit volume) by dividing the total company-operated sales by the total company-operated units.

We’ve looked at Shake Shack’s (SHAK) revenues and drivers. It’s also important to understand how the company has been managing its key costs.

We’ll look at Shake Shack’s profitability in terms of its operating and net profit margins. In 2013, it had an operating profit of $5.9 million.

Shake Shack (SHAK) primarily started as a hot dog cart in Manhattan’s Madison Square Park. However, it grew into a restaurant chain.