SHAK: For its cult following and immense popularity, you would think Shake Shack would be doing better. The stock is down over 40% from a year earlier as the market casts doubt on its ability to sustain accelerated growth. Rapid expansion and menu innovation have been key to driving sales and comps, but it has also put pressure on margins. Don’t expect these growing pains to subside as Shake Shack continues in its maturation process. Additionally rising labor costs and higher beef prices could put pressure on profitability this quarter.

RDEN: Almost two months ago Revlon agreed to purchase Elizabeth Arden for $419.30 million in cash, a deal that unites two well known cosmetic brands. On the surface, the deal appears to be a bargain for Revlon, capturing a growing company at just one times sales. Elizabeth Arden has also made significant strides in recent quarters. Last quarter featured positive year over comparisons, breaking a long streak of negative growth. The company reached this point by growing its fragrance portfolio and implementing cost cutting initiatives. The biggest question mark this quarter won’t likely be earnings, but how management views the future under the Revlon umbrella.