By Angela Chen
Shake Shack Inc. on Wednesday raised its revenue guidance for
the year as the boutique burger chain reported sales grew a
better-than-expected 56% in the quarter ended April 1.
The company's share price--which has more than tripled since
being priced for the stock's initial public offering in
January--surged 6.6% to $72.90 in recent aftermarket trading.
The New York-based company now expects revenue of between $161
million and $165 million, up from its previous forecast range of
$159 million to $163 million. Analysts, however, had been expecting
$165 million.
In the latest reporting period, total revenue--which includes
restaurant sales and licensing revenue--reached $37.8 million,
above estimates of analysts polled by Thomson Reuters for $34
million. Sales at domestic company-owned restaurants open at least
two years rose 12%.
But Shake Shack also reported a loss of $12.7 million, or $1.06
a share, hurt by costs connected to the company's initial public
offering, compared with a year-earlier profit of $1.1 million, or
four cents a share. Excluding the IPO costs and other one-time
items, the company's per-share earnings rose to four cents from two
cents a year earlier. On that basis, analysts had expected a
per-share loss of three cents.
Shake Shack is among a wave of so-called fast casual chains
across the restaurant industry that offer fresh, made-to-order
items. While still tiny compared with giants like McDonald's Corp.,
upmarket burger chains have been popular of late.
Shake Shack opened three domestic company-owned locations during
the quarter, including its first restaurant in Baltimore. The
company said Wednesday that it remains on track to open at least 10
new domestic company-operated Shacks and five new
international-licensed restaurants in 2015.
Some analysts had been skeptical about whether Shake Shack would
be able to hold on to its lofty valuation once it reported its
quarterly results. The shares more than doubled in their
stock-market debut Jan. 30, ending at $45.90, up from their initial
public offering price of $21.
Write to Angela Chen at angela.chen@dowjones.com
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