Why Shake Shack Stock Fell as Much as 14% in Morning Trading Today
Shares of Shake Shack (NYSE: SHAK), a hamburger restaurant chain, fell as much as 14% in the first few hours on Friday. The big news came out after the close on Thursday, when the company reported fourth-quarter 2021 earnings. There were positives and negatives to digest, and investors obviously came away with a glass-half-empty feel.
Revenue was $203 million in the fourth quarter of 2021, up 29% from the same stanza of 2020. The top line in the fourth quarter was roughly in line with analyst expectations. That said, the fourth quarter in 2020 included an extra week. Excluding that week, fourth quarter 2021 sales were up an even more impressive 38.8%.
Helping to drive revenue was the fact that the company had 218 company-operated restaurants and 151 licensed locations at the end of the fourth quarter of 2021, compared to 183 and 128, respectively, in the year-ago period. Shake Shack opened 19 stores in the fourth quarter of 2021.
Source Fool.com
