Leigh Drogen is the Founder and CEO of Estimize. Estimize is an open financial estimates platform which facilitates the aggregation of fundamental estimates from independent, buy-side, and sell-side analysts, along with those of industry experts, private investors and students. By sourcing estimates from a diverse community of individuals, Estimize provides both a more accurate and more representative view of expectations compared to sell side only data. Leigh started his career as a quant trader at Geller Capital, a White Plains, NY based fund where he ran strategies that looked at earnings acceleration and analyst estimate revision models, as well as price momentum and several sentiment indicators. Leigh later went on to be the founder of Surfview Capital, a New York based asset management firm that used many of the same strategies as Geller Capital, with a focus on higher beta names on an intermediate term time frame. His educational background includes focus in economics and international relations, specifically war theory. He is a graduate with honors from Hunter College in New York City. You can contact Leigh by emailing him at Leigh@estimize.com
3 Reasons This Was a Great Quarter for Shake Shack Inc (SHAK)
Shack Shake Inc (NYSE:SHAK) uses a metric it calls Same-Shack sales to describe its business at locations which have been open for at least 2 years. Most companies compare same store sales after only one year of operation, but Shake Shack says it sees so much initial demand when it opens a new location that it likes to wait an extra year for business to settle into normalcy before comparing results. Same-Shack sales improved dramatically rising from a 3.9% gain last quarter to an 11.7% advancement this period.
2. Young locations top expectations
It’s reasonable to postulate that some of the Same-Shack boost may have come from the media attention that the IPO brought with it. Regardless, this was a big increase and an impressive achievement. Aside from the growth in Shack Shake’s early locations, new stores made a big impact too proving that the Shake Shack brand resonates globally.
Shack Shake’s quarterly sales came in at $37.8 million. That beat the Estimize consensus of $34.2 million by 11% and topped Wall Street’s forecast of $33.4 million by 13%. This was a much better quarter than investors expected.
From an operational standpoint Shake Shake has not only been impressive with Same-Shack sales, but they’ve also done a great job staying on track with their expansion plans. Shake Shack will need to continue opening new stores across the globe to grow into its hefty $2.6 billion valuation. So far Danny Meyer’s team is proving that they can keep their promises.
Shake Shack opened two new locations in Boston this quarter and one in Baltimore. Management reiterated their commitment to open at least 10 new stores in the US and 5 international licensed locations this year. With a young growth company like Shake Shack it’s important that the company proves it can keep on schedule to preserve its credibility. They did that this quarter.
Over the past 3 months Shake Shake combined excellent operational execution with meeting deadlines. It definitely helped further the bull thesis that Shake Shack can become a major player on the international stage.