Shake Shack shares crashed the most on record after the burger chain reported weaker-than-expected first-quarter revenue and adjusted EBITDA, with management blaming the miss on "significant weather impacts."
But the weather excuse may be masking a much larger problem: a weakening consumer increasingly pushing back against premium fast-casual pricing, with the average Shake Shack meal costing around $23.
SHAK reported first-quarter results that missed Bloomberg Consensus estimates, with revenue and adjusted EBITDA coming in light as the burger chain faced margin pressure despite positive comparable sales.
Here's a snapshot of first-quarter results, courtesy of Bloomberg:
Revenue: $366.7 million, estimate $372.5 million (Bloomberg Consensus)
Shack sales: $354.0 million, estimate $358.7 million
Licensing revenue: $12.7 million
Adjusted EBITDA: $37.0 million, estimate $45.5 million
Comparable sales: +4.6%, estimate +4.65%
Restaurant-level operating margin: 21.2%, estimate 21.9%
Source: ZeroHedge News
