Shake Shack Inc Beats Estimates, TripAdvisor Inc Misses

Shake Shack

Shake Shack and TripAdvisor released their latest earnings reports after closing bell tonight. Shake Shack reported adjusted earnings of 12 cents per share, compared to last year’s 3 cents per share, and $53.3 million in revenue, a 67.4% year over year increase. Analysts were expecting earnings of 7 cents per share and $47.27 million in revenue. This marks Shake Shack’s fourth earnings report as a public company.

TripAdvisor reported non-GAAP earnings of 53 cents per share or income of $78 million and $415 million in revenue, a 17% year over year increase in constant currency. Analysts were looking for earnings of 55 cents per share and $430.23 million in revenue. In last year’s third quarter, the internet travel firm reported earnings of 48 cents per share or $71 million on $354 million in revenue.

Shake Shack records strong growth

Shake Shack’s net income was 10 cents per share or $1.5 million. Adjusted EBITDA skyrocketed, climbing 128.3% to $13 million. Shack sales rose 70% year over year to $51.3 million, while Same-Shack sales climbed 17.1%. The Shack-level operating profit rose 105.7% to $15.6 million. Average weekly sales for company-operated Shacks in the U.S. increased 9.6% to $103,000 on the back of strong traffic growth, higher menu prices, and a favorable product mix.

Shake Shack also increased its revenue guidance for the full year, pushing up to a range of $189 million to $190 million, compared to the previous guide of $171 million to $174 million. Management also raised their outlook for same-Shack sales growth to a range of 11% to 12%, compared to their previous expectation for growth in the mid- to high-single digits. They plan to open 12 new domestic company-owned Shacks this year and six rather than five international licensed Shacks this year.

For 2016, Shake Shack expects revenue to be between $237 million and $242 million and same-Shack sales growth of 2.5% to 3%.

Shares of Shake Shack climbed by as much as 3.42% to $52.75 per share in after-hours trades.

TripAdvisor’s results disappoint

TripAdvisor’s GAAP net income was 51 cents per share or $74 million, compared to last year’s 37 cents per share or $54 million. Adjusted EBITDA rose 9% year over year or 26% in constant currency to $130 million, compared to last year’s $119 million.

Click-based ad revenue rose 6% to $261 million and made up 63% of the company’s total revenue, a slight decline from last year’s 70% of total revenue. In constant currencies, click-based ad revenue would have increased by about 15%. Display-based ad revenue rose 20% to $42 million and made up 10% of total revenue, which was flat with last year’s percentage of total revenue. Subscription, transaction and other revenue climbed 56% to $112 million and made up 27% of TripAdvisor’s total revenue. Hotel segment revenue rose 8% to $340 million.

The company said the number of monthly unique visitors increased 2% to 350 million. It had 290 million reviews and opinions covering 5.3 million places to stay or eat and things to do. TripAdvisor’s app hit 230 million downloads and contributed 33% of the growth in registered members.

Shares of TripAdvisor tumbled by as much as 4.7% to $79.20 per share in after-hours trades following tonight’s earnings report.


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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

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