In the three months until December 26, revenue, which includes Shack sales and licensing revenue, increased 29.3% to $124.3 million, up from $96.1 million in the year-ago quarter and ahead of Wall Street’s consensus of $118.82 million. Its net loss came to $1 million compared to a loss of $12.5 million for the year-ago quarter. On an adjusted basis, its per-share earnings amounted to $0.06 per share, handily beating analysts’ estimate of $0.03 per share.
But its growth projections look pessimistic as the company expects same-store sales to come in at a range of flat to up just 1% this year.
Investors were left unimpressed, sending Shake Shack shares down 3.35% to $50.50 before the opening bell on Tuesday
Restaurant sales jumped 29.6% to $120.7 million thanks mainly to the opening of 34 company-run Shacks over the last year as well as same-Shack sales growth.
Looking ahead, the New York company expects total revenue for 2019 to fall between $570 million and $576 million. It also expects between 36 and 40 company-run Shacks to be opened in fiscal 2019 and as many as 16 to 18 licensed stores to launch over the same period.
Founded by restaurateur Danny Meyer, Shake Shack is a burger stand known for burgers, chicken sandwiches, frozen custard, fries and craft beer. Since the first Shack opened in New York City’s Madison Square Park in 2004, the company has expanded to more than 200 locations, which now include restaurants in London, Hong Kong, Istanbul, Dubai, Tokyo, Moscow and Seoul.
Contact Ellen Kelleher at [email protected]
-- updated with share price movement