By Kim Khan
Investing.com – Shake Shack (NYSE:) investors are shedding shares Tuesday as it looks like problems getting Shake Shack burgers will persist.
Shares fell 14% in afternoon trading as the company’s latest guidance spooked the market and the company also said it hasn’t solved its home delivery problems yet.
Shake Shack reported fourth-quarter of 6 cents per share, excluding items, and sales of $151.44 million.
Analysts were looking for a loss of a penny per share and sales of $153 million, according to forecasts compiled by Investing.com.
And looking ahead, it sees 2020 revenue of $712 million to $720 million, well below the $737 million analysts were looking for, according the S&P Capital IQ consensus.
The New York City-based fast-casual chain expects “potentially significant volatility in the delivery channel throughout much of 2020,” Chief Financial Officer Tara Comonte said during an earnings call on Monday.
It moved last year to an exclusive partnership with third-party platform Grubhub.
The company, known for its “roadside” style milkshakes and burgers, is also facing “potentially significant headwinds” due to the coronavirus outbreak in China, where it has seven stores, and concerns throughout the rest of Asia.
— Reuters contributed to this report.
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