Shake Shack Stock Is Soaring Today While the S&P 500 Drops. Here's Why.
The S&P 500 was dropping on Thursday morning but shareholders of restaurant chain Shake Shack (NYSE: SHAK) might not have noticed. The company reported financial results for the second quarter of 2024 this morning before the stock market opened. And as of 11:30 a.m. ET, Shake Shack stock was up nearly 18%.
In Q2, Shake Shack opened 12 new restaurants that are owned by the company and 11 licensed locations. Between these new locations and same-store-sales growth of 4%, the company's Q2 revenue was up 16% year over year to $316 million. That was higher than management's guidance and higher than expectations from analysts.
Shake Shack's profit metrics are also improving lately. In Q2, the company had operating income of nearly $11 million, which was a big jump from operating income of less than $5 million in the same quarter of last year.
Source Fool.com
