Shake Shack Inc Stock Soars as Burger Chain Crushes Earnings

Shake Shack Inc (NYSE:SHAK) shares were higher Thursday as the company reported its latest quarterly earnings results, which were well ahead of the curve.

Shake Shack×150.jpg 150w,×40.jpg 40w,×30.jpg 30w,×160.jpg 160w,×65.jpg 65w,×100.jpg 100w,×80.jpg 80w,×125.jpg 125w,×50.jpg 50w,×71.jpg 71w,×120.jpg 120w” sizes=”(max-width: 185px) 100vw, 185px” />The burger joint posted strong results during its first-quarter report for fiscal 2018, yielding revenue of $99.1 million, a 29.2% increase compared to the $76.7 million it raked in during the year-ago quarter. Analysts were calling for revenue of $96.7 million, according to data compiled by FactSet.

Shake Shack posted net income of $3.5 million for the period, or 13 cents per share, beating the $2.3 million, or 9 cents per share it earned during the year-ago quarter. The company’s adjusted earnings impressed as well at 15 cents per share, better than the 8 cents per share that the Wall Street consensus estimate projected.

The burger chain’s same-restaurant sales were up by 1.7% compared to the year-ago quarter, handily topping the 0.4% slide that analysts polled by FactSet called for in their guidance. Over the course of its first quarter, Shake Shack opened nine new locations, five company-operated restaurants in the U.S. and four licenses locations overseas.

The company is now calling for fiscal 2018 revenue in the range of $446 million and $450 million, up from its previous outlook of $444 million to $448 million. Wall Street forecasts revenue of $448.5 million, according to FactSet.

Shake Shack’s same-restaurant sales are slated to be flat to up 1%, better than its previous guidance of flat same-restaurant sales. Analysts are calling for a same-restaurant sales growth of 0.4%, per FactSet.

SHAK stock gained about 7.6% after the bell on its strong earnings showing.

Compare Brokers

Leave a Reply

Your email address will not be published. Required fields are marked *