Burger chain Shake Shack Inc (NYSE:SHAK) unveiled a rise in sales in the first quarter, which beat Wall Street estimates, with new stores and growth in its digital channels boosting customers numbers.
"Same-Shack" sales rose 3.6% in the three months, beating analysts projected 0.8% increase.
Total revenue for the period, which includes Shack sales and licensing revenue, increased 33.8% to $132.6 million from $99.1 million in the same quarter of 2018.
As a result, the company has lifted its full-year revenue guidance by $6 million, to a range of between $576 million and $582 million, and lofted same-store sales growth expectations to between 1% and 2% from between 0 and 1%.
Meanwhile, net income came in at $3.6 million, or 2.7% of total revenue, compared to $5.0 million, or 5% of total revenue, for the same period last year.
“We are pleased with the strong momentum from 2018 carried forward into the first quarter of this year," said CEO Randy Garutti.
"We grew total revenue by almost 34%, Adjusted EBITDA by over 10% and delivered positive same-Shack sales of 3.6%, including a return to positive traffic growth of 1.6%. Our performance was supported by the strength from new openings, the holiday shift and warm weather conditions across a number of key markets early in the quarter and the continued growth of our digital channels, where we see significant ongoing opportunities."
Shares in New York were up as much as 6.6% to $67.10 in pre-market trade, before investors digested the news. Shares were most recently up about 1% to $63.56.