Shake Shack Inc. (NYSE: SHAK) released first-quarter earnings report after markets closed

Thursday. The company posted $0.10 in earnings per share (EPS) and $76.7 million in revenue, versus consensus estimates from Thomson Reuters that called for $0.08 in EPS and $74.72 million in revenue. The same period from last year had $0.08 in EPS and $54.16 million in revenue.

Same-store sales decreased 2.5% for the first quarter of 2017 versus 9.9% growth in the first quarter last year. The decline in same-store sales consisted of a 3.4% decrease in guest traffic offset by a combined increase in price and sales mix of 0.9%.

The company had not reported a decline in same-store sales since its IPO back in 2015.

In terms of the guidance for the 2017 full year, the company expects to see revenues in the range of $351 to $355 million (up from the previous range of $349 to $353 million) and same-store sales growth to be flat to the prior year. The consensus estimates are calling for $0.17 in EPS and $89.33 in revenue.

On the books, cash and cash equivalents to $15.7 million at the end of the quarter, versus $11.6 million at the end of December 2016.

Randy Garutti, CEO of Shake Shack, commented:

We’re proud of our nearly 42% total revenue growth and 29% Adjusted EBITDA growth in the first quarter, adding 13 new system-wide Shack openings. New company-operated Shack growth represented approximately $24 million of increased revenue this quarter, offset by a decrease in same-Shack sales. We are clearly dissatisfied with our comp result in Q1, but as a reminder our small comp base is made up of only 32 Shacks, the majority of which exist in the Northeast region which was most affected by cold weather and the holiday shift in March. Looking into the remainder of the year, we’re increasing our development schedule and overall revenue expectations, despite the relatively small impact the comp base has on the overall Shack story. We remain committed to executing our strategy of growing in premier locations, investing in our teams and delivering a great guest experience. We are extremely pleased with the early results of the Shack App and this is a key component of our long-term strategy to meet our guests whenever and wherever they want their Shack.

Shares of Shake Shack closed Thursday down 2.6% at $33.15, with a consensus analyst price target of $37.90 and a 52-week trading range of $30.36 to $42.94. Following the release, the stock was down 9.5% at $29.99 in the after-hours trading session.

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