New York Post, Tuesday, August 6, 2019nypost.comShake Shack received a
healthy serving of results
on Monday.
Known for its burgers and
fries, the chain reported
second-quarter earnings of
$9 million.
The New York-based
company said it had net in-
come of 29 cents per share.
Earnings, adjusted for one-
time items, were 27 cents
per share.
The results exceeded
Wall Street expectations.
The average estimate of
eight analysts surveyed by
Zacks Investment Research
was for earnings of 22 cents
per share.
Shake Shack posted reve-
nue of $152.7 million in the
period, also surpassing Wall
Street forecasts. Seven ana-
lysts surveyed by Zacks ex-
pected $148.8 million.
The company expects
full-year revenue in the
range of $585 million to
$590 million.
Shares of Shake Shack,
which is helmed by CEO
Randy Garutti, have risen
62 percent since the begin-
ning of the year.
In trading on Monday, the
stock closed down 2.7 per-
cent — only to regain al-
most the exact same
amount after hours, for a
share price of $75.35. AP
Love that
Q2 sauce
you make
SHAKE SHACK
High revenue on the menu.Tyson Foods and other major
chicken companies said they received
subpoenas from the Justice Depart-
ment, signaling an expansion of a
criminal investigation into allegations
they colluded to prop up prices.
Tyson, the biggest US meat com-
pany, disclosed in a regulatory filing
on Monday that it had received a
grand jury subpoena from the DOJ
seeking “documents and information
related to the chicken industry,” weeks
after the agency disclosed a criminal
investigation into the sector.
Pilgrim’s Pride separately disclosed
in a regulatory filing late last week
that the DOJ had issued the Colorado-
based company a subpoena related to
the investigation, and Perdue Farms
received a similar subpoena and will
cooperate with the request, a Perdue
spokeswoman said.A Pilgrim’s Pride spokesman de-
clined to comment further. Tyson said
in the filing that it was cooperating
with the DOJ request.
Walmart, Sysco Corp. and others
have accused chicken companies of
colluding to influence prices.
Chicken processors have rejected
those allegations and are contesting the
suits. They say supply and demand have
driven poultry prices. Dow JonesTyson tapped in chicken probe
The corporate parent of the Perkins and Marie Cal-
lender’s restaurant chains is closing stores and putting
the operation up for sale in bankruptcy, in an effort to pay
off more than $114 million owed to senior lenders.
The Memphis, Tenn.-based company owns, operates or
franchises more than 400 outlets in the US, Canada and
Mexico. It closed 11 Perkins and 21 Marie Callender’s res-
taurants before filing for protection from creditors Mon-
day.
It also operates the Foxtail Foods bakery goods manu-
facturing business, which supplies its restaurants and
sells to outside distributors. Dow Jones
Perkins goes broke
BANK JOB BUST
Rivers of resumes
flow as Wall Street
layoff dam breaks
‘LEAN’ IN:Cut-rate bargains
like this might be in vogue
if finance-sector job cuts
deepen in the months ahead.By KEVIN DUGANThe US labor market may
be booming — but it’s been
a bloodbath on Wall Street.
A recent wave of layoffs
from some of the biggest
banks is making it harder
than ever to get a job on
Wall Street, recruiters and
other insiders say.
On Monday, banking gi-
ant HSBC announced more
than 4,750 layoffs as the
company looks to rein in
costs — a culling that brings
the total number of bankers
out of work this year to
more than 23,000 globally.
HSBC’s announcement
comes on the heels of more
than 18,000 cuts from
Deutsche Bank, and hun-
dreds more from Citigroup,
Goldman Sachs and other
powerhouses that have
slimmed ranks this year.
While it’s unclear how
many of those positions are
based in New York City, lo-
cal recruiters say they’re be-
ing flooded by resumes — a
glut that is making it tough
for anyone who’s not a top-
tier candidate to find work.
“On the sell side, it’s turn-
ing out to be a big year for
layoffs in comparison to the
last three years,” Michael
Karp, co-founder of Op-
tions Group, told The Post.
“It’s not a pretty environ-
ment to go on a search for afinance job, even if the unem-
ployment rate is 3.7 percent.”
Driving the layoffs are a
combination of factors, in-
cluding a major reshuffling at
Deutsche Bank that will lead
to the elimination of roughly
one in five jobs.
Banks are also getting hit by
President Trump’s trade war,
which has caused institu-
tional investors and other
major clients to step back
from trading even as big
names like Uber have
had initial public offer-
ings.
Adding to banks’
woes, the Federal Re-
serve cut its base inter-
est rate for the first time
since 2008 —decreasing
what banks can earn on
mortgages and other
loans. It could cut again
this year if Trump gets his
way.
“It’s a tough time if you’re an
average performer,” Alan
Johnson, CEO of Johnson As-
sociates, told The Post. “If
you’re good or very good, it’s
not a bad time.”
The 2019 Wall Street dol-
drums have gotten so bad that
headhunters are even recom-
mending their banker clients
look elsewhere for work.
“This is a great time for peo-
ple to look at their careers and
explore other avenues, like
fintech, crypto and the new
job economy,” said OptionsGroup’s Karp.
The most in-demand types
of jobs, Johnson said, are in
technology and operations,
and banks are continuing to
hire aggressively in those po-
sitions.
“It’s surprising,” Johnson
said. “The markets and the
real economy can be up and
Wall Street can be down. The
real question is, when the
markets and real economy are
down, then what happens to
Wall Street?”
[email protected]Post photo composite