Shake Shack released the earnings results from its second fiscal quarter after closing bell tonight, posting non-GAAP earnings of 14 cents per share on $66.5 million in revenue. Analysts had been expecting earnings of 13 cents per share on $63.11 million in revenue. In last year’s second quarter, the restaurant chain reported $48.45 million in revenue and 9 cents per share in earnings.
Shake Shack’s comparable sales miss expectations
Shake Shack said same Shack sales increased 4.5% year over year, widely missing the consensus of a 5.4% increase. The company’s Shack-level operating profit increased 40.6% to $19.9 million, while adjusted EBITDA rose 39.3% to $15.6 million. Net income was 14 cents per share or $3.3 million, compared to last year’s net income of 8 cents per share or $1.1 million.
“Domestically, given favorable development tailwinds in our 2016 pipeline, we have increased guidance to open 18 domestic company-operated Shacks this year,” said Shake Shack CEO Randy Garutti in a statement. “Next week we will reach a milestone of our 100th Shack opening worldwide. We have never been more excited about the opportunities ahead of us and are committed to investing in our team as we envision and execute the next 100 great Shacks.”
Shake Shack raises guidance
Shake Shack management also raised other guidance metrics for the year. Their new outlook for revenue is between $253 million and $256 million, compared to their previous guidance for $245 million to $249 million. Wall Street’s consensus stands at $252 million. They expect Same Shack sales to increase by 4% to 5% for the full year.
Before increasing their outlook for the number of Shacks they plan to open this year, the company had guided for 18 new domestic company-operated Shacks this year. They also plan to open seven licensed Shacks, net a relocation, which is an increase of one Shack from the previous outlook.
Shares of Shake Shack plunged in after-hours trades, falling by as much as 8.69% to $37.32 following tonight’s earnings report.
