Burger chain Shake Shack announced third-quarter 2019 earnings of $10.3 million, on revenues that were over 31
Question:
Burger chain Shake Shack announced third-quarter 2019 earnings of $10.3 million, on revenues that were over 31 percent higher than those of the same period in the prior year. Earnings per share (+$0.26) beat the consensus analyst forecast of $0.21. Revenue and same-store sales, however, fell short of market expectations. In reaction to the news, Shake Shack's stock price dropped by over 17%.
INSTRUCTIONS:
a. Why are companies concerned about meeting or beating the analyst forecasts?
b. What strategies can companies use to help meet or beat the forecasts, and why might those who analyze financial statements be concerned?
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Step by Step Answer:
a Companies are always worried about meeting or beating analyst forecasts Analysts are the ones who ...View the full answer
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Rustia Melrod
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