Major benchmarks saw a lot of ups and downs on Tuesday as investors tried to come to a consensus about the likely future direction of the global economy. Signs of progress in trade talks between the U.S. and China led to early gains, but some broader concerns about various economic issues weighed on enthusiasm later in the session. Some companies had bad news that sent their shares lower. Shake Shack (NYSE: SHAK), Myriad Genetics (NASDAQ: MYGN), and Trivago (NASDAQ: TRVG) were among the worst performers. Here's why they did so poorly.
Shares of Shake Shack fell nearly 21% after the restaurant chain reported disappointing financial results for the third quarter of 2019. Revenue climbed 32% on a 35% rise in unit growth compared to year-earlier levels, showing the continued popularity of the burger specialist. However, same-restaurant sales were up just 2%, and not everyone was satisfied with the $2.2 million increase in Shake Shack's adjusted pro forma net income to $10 million. In addition, the company cut its projections for comparable-sales growth for the full year from 2% to 1.5%. Investors have had high hopes for the restaurant chain, but Shake Shack wasn't able to deliver everything they wanted to see.
Image source: Shake Shack.