Shake Shack reports first quarterly net loss in three years
Updated
Updated · MarketWatch · May 7
Shake Shack reports first quarterly net loss in three years
9 articles · Updated · MarketWatch · May 7
The chain posted a $300,000 GAAP loss as first-quarter revenue rose 14.3% to $366.7 million, missed estimates, and shares sank 28.2%; Michelle Hook was named CFO from 11 May.
Executives blamed elevated beef costs, broader inflation and cautious consumers, while saying procurement efforts limited price pressures without further menu increases and maintaining full-year sales guidance of $1.6 billion to $1.7 billion.
Shake Shack said Middle East conflict disrupted overseas stores and slowed US inbound tourism, though its second-quarter revenue forecast topped Wall Street expectations amid hopes for World Cup demand and new menu items.
With soaring costs causing a quarterly loss, is Shake Shack's massive tech investment a brilliant long-term play or a costly strategic misstep?
Can Shake Shack's new CFO and tech overhaul overcome the worst beef price crisis in decades?