FINWIRES · TerminalLIVE
FINWIRES

Shake Shack Stock Plunges as Inclement Weather Hurts First-Quarter Performance

By

-- Shake Shack (SHAK) shares plummeted Thursday after the fast food chain operator's first-quarter results fell short of Wall Street's estimates amid weather-related headwinds.

The company broke even in terms of non-GAAP earnings per share, compared with $0.14 adjusted EPS a year earlier and the FactSet-polled consensus that called for $0.12 in EPS. Revenue grew 14% to $366.7 million, while same-store sales rose 4.6%.

Analysts expected revenue of $372.4 million and 4.7% in comparable sales growth in the quarter ended April 1.

Inclement weather weighed down comparable sales by 240 basis points and impacted adjusted earnings before interest, taxes, depreciation and amortization in the first quarter, Chief Executive Rob Lynch said in a statement.

The company's shares plunged about 30% intraday Thursday.

Restaurant level margins slightly missed the company's own expectations amid higher operating expenses and "some mix impact" of marketing initiatives," the company said in a shareholder letter.

For 2026, Shake Shack maintained its revenue guidance of $1.6 billion to $1.7 billion, continuing to expect same-store sales to grow by a low single-digit percentage. Analysts in a FactSet poll are projecting sales of $1.66 billion and same-store sales growth of 3%.

"Our sales momentum is building in (the second quarter) and that we are reiterating our 2026 guidance for same Shack sales restaurant level margins and our long-term financial targets," Lynch said on an earnings conference call, according to a FactSet transcript.

Shake Shack appointed Michelle Hook as its chief financial officer, effective May 11. Hook previously served as CFO of Portillo's (PTLO).

Katherine Fogertey stepped down as Shake Shack CFO in March.

Fast-food giant McDonald's (MCD) logged first-quarter results above the Street's views on Thursday, a day after Burger King parent Restaurant Brands International (QSR) posted stronger-than-expected financials.

Last week, Yum Brands (YUM) reported first-quarter comparable sales growth at KFC and Taco Bell.

Price: $69.55, Change: $-26.97, Percent Change: -27.94%

Related Articles

Australia

Sector Update: Energy

Energy stocks were lower Thursday afternoon, with the NYSE Energy Sector Index dropping 2% and the State Street Energy Select Sector SPDR ETF (XLE) falling 1.8%.The Philadelphia Oil Service Sector Index was decreasing 2.2%, and the Dow Jones US Utilities Index was shedding 1.1%.Front-month West Texas Intermediate crude oil was rising 0.6% to $95.61 a barrel, and the global benchmark Brent crude contract was decreasing 0.5% to $100.78 a barrel. Henry Hub natural gas futures rose 2.1% to $2.79 per 1 million BTU.In corporate news, Cheniere Energy (LNG) shares fell 5% after the company reported Thursday a Q1 loss of $16.65 per diluted share, swinging from earnings of $1.57 a year earlier.

$LNG
Australia

Williams Continues to Layer on Growth Projects, RBC Capital Markets Says

Williams (WMB) continues to layer on growth projects, including its Neo power innovation project, and estimates a compound annual growth rate of 9% for sanctioned projects through 2030 while still targeting 10%, RBC Capital Markets said in a note Wednesday.The company anticipates a 5x build multiple on the $2.3 billion Neo project cost, implying about $460 million of annual EBITDA generation, while Atlas includes a new 13-year agreement to provide a pipeline capacity of 164 million cubic feet per day to a data center in the Northeast which is expected to be in service by year-end, according to the note.Management expects to be in the top half of its 2026 adjusted EBITDA guidance range of $8.05 billion to $8.35 billion, supported by a strong Q1 and outlook for the rest of the year, the brokerage said.Analysts now forecast 2026 and 2027 adjusted EBITDA of $8.39 billion and $9.29 billion, respectively, and available funds from operations of $6.36 billion and $7.15 billion, respectively.RBC Capital Markets kept an outperform rating on Williams and raised the price target to $83 from $82.Shares of Williams were down 1.8% in Thursday trading.Price: $72.45, Change: $-1.32, Percent Change: -1.78%

$WMB
Commodities

Vistra Reports Higher Q1 Generation, Advances 4.5 GW Expansion Pipeline

Vistra (VST) reported Q1 earnings Thursday, showing total ongoing operations generation of 50.5 terawatt-hours, up from 48 TWh a year earlier.Generation in the East region increased to 30 TWh for the quarter ended March 31, up from 27.5 TWh a year earlier, while Texas generation rose to 20.1 TWh from 20 TWh.West region generation declined to 0.4 TWh in the quarter from 0.5 TWh a year earlier.Vistra added that total commercial availability fell to 92.7% for Q1, down from 95% a year earlier.Retail electricity volumes declined to 30.1 TWh in the quarter, down from 33.3 TWh a year earlier, amid milder weather conditions in ERCOT.Vistra is advancing about 4.5 gigawatts of generation capacity additions across gas, renewables, coal-to-gas conversions and nuclear uprates, including projects already completed or under construction.The company expects Permian gas peaker units to enter service by Q2 2028 and plans to begin construction on Oak Hill Phase 2 in 2026.Price: $158.55, Change: $+0.25, Percent Change: +0.16%

$VST