Diamonds and Dogs
Shake Shack (SHAK) shaking things up. The burger company is jumping 21% to a new high following better than expected earnings. The company beat earnings estimates by 13 cents as revenue rose 29% to $99.1 million, beating our consensus estimate of $96.1 million. Part of this success can be accredited to Shake Shack's initiative to diversify its store locations, both domestic and international. The company added 32 domestic locations and 16 international locations year-to-date. This helped shift the regional burden found in the company, with New York representing 36% of Shake Shack sales domestically. The company is expanding into Arizona, California, and Hong Kong with new stores. They now operate across 22 states and 12 countries.
Fluor (FLR) getting floored. Engineering and construction company is down 21% to a five month low following disappointing earnings. Fluor said it lost $18 million, or 13 cents a share, versus earnings of $61 million, or 43 cents a share, in the year-ago period. First-quarter revenue of $4.8 billion was flat compared to a year ago. Fluor lowered guidance significantly for the year with estimates coming in between $2.10 and $2.50 for the year, down from a previous range of $3.10 to $3.50 a share. Lower guidance was due to revisions on a gas-fired power project.