Shake Shack Inc Stock Soars as Burger Chain Crushes Earnings

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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 IncThe 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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/shake-shack-inc-shak-3/.

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