Down 28% for the Year Despite Record Revenues Last Quarter, Is Shake Shack a Buy?

On the surface, there was a lot for investors to like in Shake Shack's (NYSE: SHAK) second-quarter earnings report. The company logged record revenue of $356 million, slightly above the $354 million analysts were expecting. Adjusted earnings of $0.44 per share also compared favorably to the $0.38 analyst consensus. Not only did the company add 63 stores over the preceding year -- an 11.5% increase -- but it grew revenue at an even faster pace, up 12.6% year over year.That hardly sounds like a disastrous quarter, yet Wall Street treated it as such with shares cratering nearly 15% the day of the earnings report. The culprit was same-store sales growth of 1.8%, just short of the 2% analysts were expecting.In the months since, shares have continued to drift downward and are now down 28% year to date. Meanwhike, the S&P 500 is up nearly 15%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool