Finance: Shack Shack is climbing after crushing earnings (SHAK)

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Shake Shack reported first quarter earnings that topped Wall Street's expectations on Thursday that sent the stock skyward in after-hours trading.


Shake Shack reported first-quarter earnings that topped Wall Street's expectations on Thursday, sending shares surging in after-hours trading.

Here are the key figures:

  • Earnings per share: $0.15 versus an estimated $0.08.
  • Revenue: $99.1 million versus an estimated $96.78 million.

Same-Shack sales, one of the most closely-watched metrics for the burger chain, came in at 1.7%, well above the 0.8% last quarter

"2018 is off to a strong start as we built upon our fourth quarter momentum, reporting another quarter of robust top and bottom-line growth," CEO Randy Garutti said in a press release. "We delivered year over year revenue growth of approximately 29%, including a 1.7% increase in same-Shack sales and grew adjusted EBITDA by over 30%. These results were supported by the continued evolution of our digital initiatives and the strength of new and existing Shacks as we executed on our development plans."

The company plans to open 32 to 35 new restaurants in the US, it said, as well as 16 to 18 licensed Shacks internationally as it ramps up to its target of 450 by the end of 2020. Its first Chinese location opened in Hong Kong this week.

For the full year of 2018, Shake Shack raised its revenue guidance to between $446 million and $450 million, from the previous window of $444 million to $448 million, with same-store sales of between 0% and 1% from a previous flat guidance.

"We are committed to digital innovation to better connect with our guests, delivering ongoing menu innovation, and investing in our people and infrastructure to execute on the significant long-term opportunity ahead," Garutti said.

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