The U.S. stock market is in the red despite solid numbers from the labor market. The economy generated 164,000 jobs in April. The unemployment rate is below 4%.
Shares of Shake Shack Inc. (SHAK, Financial) rose in premarket trading today after the company posted earnings per share of 10 cents in the fourth quarter on revenue of $96.14 million, which was 31.2% higher than the comparable period. The company beat revenue expectations by $3.27 million and earnings estimates by 4 cents.
Further, the operating income increased 17.0% to $5.8 million, or 6.1% of total revenue and adjusted earnings before interest, taxes, depreciation, and amortization increased 30.7% to $14.9 million.
CEO Randy Garutti said: “We delivered another year of robust global growth, opening 26 new company-operated domestic Shacks and 19 net licensed Shacks, representing a nearly 40% increase on our base. 2017 marked a milestone year of digital innovation for Shake Shack, with the launch of the Shack app, self-serve kiosks at select locations and several integrated delivery pilots designed to further enhance the guest digital experience.”
Looking ahead, the company expects 32 to 35 new domestic company-operated Shacks. They expect 16 to 18 net new licensed Shacks for the year, with focus in Asia including the first Shack in Hong Kong. By the end of 2020, it is expected to more than double the 2017 system-wide Shack count and increase the revenue to over $700 million.
Gainers
• Newell Brands Inc (NWL, Financial)
• Celgene Corp (CELG, Financial)
Losers
• Align Technology Inc (ALGN, Financial)
• TripAdvisor Inc (TRIP, Financial)
Global Markets
The main European stock markets traded higher. The U.K.'s FTSE gained 0.56%, France's CAC slid 0.03%, Spain's Ibex advanced 0.16% and Germany's Daxjumped 0.49%
In Asia, markets closed mostly in the red. China´s Shanghai closed down 0.32%, Japan's Nikkei lost 0.16%, Hong Kong's Hang Seng retreated 1.28% and India’s BSE Sensex fell 0.53%.
Disclosure: The author holds no position in any stocks mentioned
