Shake Shack and TripAdvisor released their latest earnings reports after closing bell tonight. Shake Shack reported adjusted earnings of 12 cents per share, compared to last year’s 3 cents per share, and $53.3 million in revenue, a 67.4% year over year increase. Analysts were expecting earnings of 7 cents per share and $47.27 million in revenue. This marks Shake Shack’s fourth earnings report as a public company.
TripAdvisor reported non-GAAP earnings of 53 cents per share or income of $78 million and $415 million in revenue, a 17% year over year increase in constant currency. Analysts were looking for earnings of 55 cents per share and $430.23 million in revenue. In last year’s third quarter, the internet travel firm reported earnings of 48 cents per share or $71 million on $354 million in revenue.
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Shake Shack records strong growth
Shake Shack’s net income was 10 cents per share or $1.5 million. Adjusted EBITDA skyrocketed, climbing 128.3% to $13 million. Shack sales rose 70% year over year to $51.3 million, while Same-Shack sales climbed 17.1%. The Shack-level operating profit rose 105.7% to $15.6 million. Average weekly sales for company-operated Shacks in the U.S. increased 9.6% to $103,000 on the back of strong traffic growth, higher menu prices, and a favorable product mix.
Shake Shack also increased its revenue guidance for the full year, pushing up to a range of $189 million to $190 million, compared to the previous guide of $171 million to $174 million. Management also raised their outlook for same-Shack sales growth to a range of 11% to 12%, compared to their previous expectation for growth in the mid- to high-single digits. They plan to open 12 new domestic company-owned Shacks this year and six rather than five international licensed Shacks this year.
For 2016, Shake Shack expects revenue to be between $237 million and $242 million and same-Shack sales growth of 2.5% to 3%.
Shares of Shake Shack climbed by as much as 3.42% to $52.75 per share in after-hours trades.
TripAdvisor’s results disappoint
TripAdvisor’s GAAP net income was 51 cents per share or $74 million, compared to last year’s 37 cents per share or $54 million. Adjusted EBITDA rose 9% year over year or 26% in constant currency to $130 million, compared to last year’s $119 million.
Click-based ad revenue rose 6% to $261 million and made up 63% of the company’s total revenue, a slight decline from last year’s 70% of total revenue. In constant currencies, click-based ad revenue would have increased by about 15%. Display-based ad revenue rose 20% to $42 million and made up 10% of total revenue, which was flat with last year’s percentage of total revenue. Subscription, transaction and other revenue climbed 56% to $112 million and made up 27% of TripAdvisor’s total revenue. Hotel segment revenue rose 8% to $340 million.
The company said the number of monthly unique visitors increased 2% to 350 million. It had 290 million reviews and opinions covering 5.3 million places to stay or eat and things to do. TripAdvisor’s app hit 230 million downloads and contributed 33% of the growth in registered members.
Shares of TripAdvisor tumbled by as much as 4.7% to $79.20 per share in after-hours trades following tonight’s earnings report.