Shake Shack shares jump after earnings beat, outlook raised
Shake Shack Inc. shares jumped 6.5% in Thursday after-hours trading after the burger chain reported earnings that beat expectations and raised its full-year outlook. Net income totaled $3.5 million, or 13 cents per share, up from $2.3 million, or 9 cents per share, for the same period last year. Adjusted EPS was 15 cents, exceeding the 8-cents-per-share FactSet consensus. Revenue for the quarter was $99.1 million, up from $76.7 million last year and ahead of the $96.7 million FactSet consensus. Same-restaurant sales grew 1.7% versus the FactSet expectation for a 0.4% decline. The company opened nine new locations, five company-operated restaurants in the U.S. and four licensed locations abroad. Shake Shack now expects full-year 2018 revenue between $446 million and $450 million, up from previous guidance of $444 million to $448 million. Same-restaurant sales are expected to be flat to up 1% versus previous guidance for flat same-restaurant sales. The FactSet consensus is for revenue of $448.5 million and same-restaurant sales growth of 0.4%. Shake Shack shares are up 9.8% for the year to date while the S&P 500 index is down 1.6% for the period.
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