Shake Shack released its third quarter earnings report after closing bell tonight, posting earnings of 15 cents per share on $74.6 million in sales. Analysts had been expecting earnings of 14 cents per share on $69.33 million in revenue. In last year’s third quarter, the company reported $53.3 million in revenue and 10 cents per share in earnings.
Shake Shack’s same store sales
Shake Shack said same store sales grew 2.9% year over year, compared to the 17.1% growth rate observed in last year’s third quarter. The fast casual burger chain said Shack sales grew 40.2% to $71.9 million. The non-GAAP Shack-level operating profit grew 32.6% to $20.7 million or 28.8% of Shack sales. Adjusted EBITDA grew 26.3% to $15.2 million.
“We’re executing our multi-format growth strategy with great Shacks in our current markets as well as new markets across the country,” Shake Shack Chief Executive Randy Garutti said in a statement. “We remain encouraged by the great locations we are seeing. Based upon our updated development plans, we now expect to open 19 Shacks this year and 21 to 22 next year, representing growth of 43% and 35% in 2016 and 2017, respectively.”
The company opened ten new Shacks during the third quarter, including seven domestic company-operated locations and three new licensed Shacks. It also performed a test launch of its Shack App, and management was positive about the results they’ve seen so far.
Shake Shack raises guidance
The company guided for full-year sales of $264 million to $265 million, which is far ahead of consensus at $258.55 million. The previous outlook was a range of $253 million to $256 million. Shake Shack also projects a 4% to 5% increase in same store sales for the full year.
For fiscal 2017, the company expects between $348 million and $352 million in revenue and same store sales growth of 3% to 3%. Consensus for full-year sales for fiscal 2017 stands at $335.4 million.
Shares of Shake Shack soared in after-hours trades, climbing by as much as 8.54% to $36.10.