The shares of fast-casual restaurant owner Shake Shack (SHAK) are sinking for a second straight day, falling nearly 4%. The pullbacks came after the company provided long-term growth estimates yesterday that appeared to signal a deceleration of its growth, disappointing Wall Street.

Shake Shack's Long-Term Outlook

During the three-year period between the company's fiscal 2025 and its fiscal 2027, SHAK, expects its revenue to increase on average by low-teen percentage levels annually. That's below the firm's estimate of 15% year-over-year revenue growth for the last quarter.

In the course of the three-year period, SHAK expects its adjusted EBITDA to rise each year by an average of low-to-mid-teen percentage levels. Last quarter, the company's adjusted EBITDA soared 48% versus the same period a year earlier.

In light of this data, it appears that the firm is expecting its growth to slow significantly over the longer term compared with last quarter.

For FY24, the firm estimated that its sales climbed 15%, while its adjusted EBITDA advanced 14%. SHAK's long-term outlook implies annual growth slightly below those levels in a base-case scenario.

The Recent Price Action of SHAK Stock 

In the last month, SHAK has slumped 10%, but it has climbed 6% in the previous three months. Additionally, the name has jumped 80% in the last year.

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