What Happened?
Shares of fast-food chain Shake Shack (NYSE:SHAK) jumped 13.7% in the pre-market session after the company reported impressive fourth-quarter results that beat analysts' earnings and EBITDA expectations while revenue was in line. Looking ahead, management issued 2025 guidance with revenue exceeding forecasts and outlined a three-year plan that was encouraging, calling for healthy low/mid-teens EBITDA growth over that period. Overall, the quarter delivered key positives, with strong revenue growth, expanding margins, and a promising long-term outlook.
The shares closed the day at $123.85, up 11.5% from previous close.
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What The Market Is Telling Us
Shake Shack’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. But moves this big are rare even for Shake Shack and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 19.4% on the news that the company reported strong second-quarter earnings. Shake Shack blew past analysts' gross margin expectations. Its revenue and EBITDA also outperformed Wall Street's estimates. The results also benefit from the company's expansion drive, as it launched 12 new company-operated Shacks during the quarter. Overall, this was a really good quarter that should please shareholders.
Shake Shack is down 7% since the beginning of the year, and at $123.90 per share, it is trading 10.7% below its 52-week high of $138.76 from December 2024. Investors who bought $1,000 worth of Shake Shack’s shares 5 years ago would now be looking at an investment worth $1,617.
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