Financial model assumption
Hey everyone, I need help with something. I created a 3 statement model for shake shack. my problem is I need help coming up with the assumption. I want to use regression analysis to forecast revenue and other variables that drives the business. however, I’m not sure how to begin. do I just use the regression analysis or variance analysis on the historical data to forecast the future? or what drive a business like shake shack? also I want to take Into considerations the amount of stores and licenses they have.
I'm not entirely familiar with the entire business model of Shake Shack, but I'd assume that the core business is driven off sales per sqm/sq. ft. (reason being a larger restaurant would serve more customers). Not sure if this information is available in their annual reports/company presentations though, alternatively you can use a sales per store metric to calculate their in-store sales and perhaps a % of that as others (e-Commerce, merchandise, etc).
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