Shake Shack Inc. (NYSE: SHAK) reported first-quarter financial results after the markets closed on Thursday. The company had $0.08 in earnings per share (EPS) on $54 million in revenue compared to consensus estimates from Thomson Reuters that called for $0.05 in EPS on $52.06 million in revenue. The same period from last year had $0.04 in EPS on $37.81 in revenue.
During this quarter total revenue increased by 43.3%, while Shack sales increased 44.7%. However what blew most investors away was the Same-Shack sales. These increased by 9.9%, practically double what analysts were expecting.
At the same time, there were four system-wide Shack openings, including three domestic company-operated Shacks and one international licensed Shack.
In terms of the outlook for the 2016 full year, the company expects to have total revenues in the range of $245 million to $249 million, up from the previous guidance of $237 million to $242 million. Also the company expects Same-Shack sales growth between 4% and 5%, up from 2.5% and 3.0%. There are consensus estimates calling for $0.38 in EPS on $242.87 million in revenue for the 2016 full year.
Randy Garutti, CEO of Shake Shack, commented:
With the extraordinary results in Q1, we are off to a strong start to the year. 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. 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. During the quarter, we opened three domestic company-operated Shacks including our first Shack in California in the heart of West Hollywood, which has been one of the strongest openings in our 12-year history. We are incredibly excited about the 2016 pipeline and have now raised our revenue expectations and increased guidance to open at least 16 domestic company-operated Shacks this year. We’re looking forward to a great year ahead.
On the books, the company has $65.86 million in cash and cash equivalents at the end of the quarter compared to $70.85 million at the end of 2015.
Shares of Shake Shack closed Thursday at $34.26, with a consensus analyst price target of $39.75 and a 52-week trading range of $30.00 to $96.75. Following the release of the earnings report, the stock was initially up 5.1% at $36.00 in the after-hours trading session.
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