Shake Shack shares surge on impressive sales growth
Shake Shack posted quarterly results on Wednesday that beat Wall Street expectations.
Revenue surged 56 percent to $37.8 million, driven by a 12% rise in sales at domestic company-owned restaurants open at least two years.
The company posted a loss of $12.7 million, or $1.06 per share, because of $13.2 million in costs related to its IPO. In the first quarter last year it reported profit of $1.1 million.
However, adjusted pro forma first-quarter net income was 4 cents per share, up from two cents a share a year earlier, beating expectations of a per-share loss of three cents.
“We are pleased to have continued our strong momentum through the first quarter,” CEO Randy Garutti said in a press release.
“Our strong track record of opening successful Shacks in both the United States and internationally continues to demonstrate the global appeal of Shake Shack and validates our belief in our significant whitespace opportunity.”
Shake Shack also raised its revenue guidance for the year.
Shake Shack is now forecasting $161 million to $165 million in annual revenue, up from $159 million to $163 million.
It expects to open at least 10 new stores throughout the year.
Shake Shack went public in late January. S&P Capital IQ has called it the best-performing IPO of 2015.
Shares soar in extended trading.
Shake Shack shares gained more than 8 percent in extended trading.