Shake Shack Inc. on Monday raised its revenue guidance for the
year as revenue surged 75% in the quarter that ended in June.
Shares jumped 11% in recent after-hours trading as results beat
expectations.
The company now expects full-year revenue of $171 million to
$174 million, up from its previous range of $161 million to $165
million. Analysts had called for revenue of $171 million.
New York-based Shake Shack is among a wave of so-called fast
casual chains across the restaurant industry that offer fresh,
made-to-order items. It is one of a handful of upmarket burger
chains that have weighed on results at much larger restaurants like
McDonald's Corp.
Shake Shack went public in January, with shares more than
doubling in their stock-market debut. They reached a high of
$52.50, up from their initial public offering price of $21. In
Monday after-hours trading, the stock traded at $78.04.
In the latest quarter, comparable-store sales grew 13%.
Overall, the company reported income of $1.1 million, or 8 cents
a share, compared to $1.9 million, or 6 cents a share, a year
earlier.
Revenue increased to $48.5 million from $27.7 million a year
earlier.
Analysts had expected per-share earnings of 3 cents on revenue
of $43 million.
During the quarter, Shake Shack opened three company-opened
stores in the U.S., as well as one in the United Kingdom and its
third in Moscow. It expects to open at least 12 new domestic
company-opened restaurants annually.
Write to Angela Chen at angela.chen@wsj.com
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