Shake Shack released its first quarter earnings results after closing bell tonight, posting adjusted earnings of 8 cents per share or $2.8 million, a 114.4% year over year increase, on $54.2 million in revenue. Analysts had been expecting earnings of 5 cents per share on $52.06 million in revenue. In last year’s first quarter, the fast casual dining chain posted adjusted earnings of 4 cents per share or $1.3 million on $37.8 million in revenue.
Shake Shack swings to profit
On a GAAP basis, Shake Shack swung to a profit of 7 cents per share or $1.5 million from last year’s losses of $1.06 per share or $12.7 million. Shack sales climbed 44.7% to $52.2 million, while same Shack sales climbed 9.9%. The non-GAAP Shack-level operating profit climbed 58.6% to $14.7 million, amounting to 28.2% of Shack sales. Adjusted EBITDA climbed 54.5% to $10.8 million.
Average weekly sales at domestic company-owned locations edged up to $90,000 in the quarter compared to $89,000 in the year-ago quarter as the company saw traffic grow and raised prices. Shake Shack opened four Shacks during the quarter, including three company-owned locations in the U.S. and one international licensed location in Oman.
“We have continued to execute on our growth strategy and drive record results and engagement with our guests, while making crucial investments in our team and our Shacks,” said Shake Shack Chief Executive Randy Garutti in a statement. “The recent launch of the Chick’n Shack at all domestic company-operated locations has driven traffic growth and created an entirely new way our guests can enjoy the Shack.”
Shake Shack raises revenue guide
Management also increased their guidance for this year to a range of $245 million to $249 million in revenue, compared to their previous outlook of $237 million to $242 million. They expect same Shack sales to grow by 4% to 5%, which is a significant increase from their previous outlook of 2.5% to 3% growth. They plan to open seven licensed locations in the U.K., the Middle East and Japan this year.
Shares of Shake Shack surged by as much as 4.94% to $36.12 in after-hours trades following tonight’s earnings results.