- Business Insider
Shake Shack reported first-quarter results that topped analysts’ expectations across the board on Thursday.
The fast-food chain’s performance was boosted by the launch of its Chick’n Shack burger, said CEO Randy Garutti in the earnings statement.
The company reported adjusted earnings per share of $0.08. Its revenues rose 43% from the same quarter a year ago to $54.2 million.
Analysts had estimated adjusted earnings per share of $0.05 and revenues totaling $52.2 million, according to Bloomberg.
The Chick’n Shack was developed over two years and piloted last summer at Shake Shack restaurants in Brooklyn before launching nationwide in January. It was considered a direct competitor to Chick-fil-A, the stalwart of chicken sandwiches.
So-called same-Shack sales – at stores open for at least one year – also crushed expectations, rising 9.9% (5.3% expected.)
Analysts had been looking out for the pace of expansion outside Manhattan. The company had 88 locations at the end of Q1, up from 66 year-on-year. Domestic restaurants it owned tallied 47, up from 34.
Shake Shack launched three US locations during the quarter – two in Arizona and one in California. It opened an internationally-licensed location in Oman. Three more international restaurants opened after the quarter ended.
Shake Shack raised its expectations for sales this year. It now sees revenues in a range of $245 million to $249 million, versus $237 million to $242 million earlier projected. Same-store sales are expected to rise by between 4% to 5%, up from the range of 2.5% to 3% earlier announced.
The company’s shares had fallen 25% from the January 2015 IPO through Thursday’s market close.