Shake Shack reports slowdown in key sales metric
NEW YORK (AP) — Shake Shack on Wednesday reported better-than-expected profit in the second quarter, but shares of the burger chain took a hit in after-hours trading after the company reported slowing growth in a key sales metric.
Shake Shack’s net income more than doubled to $3.3 million, or 14 cents per share, for the quarter ended in June, from $1.1 million, or 8 cents per share, a year ago.
The results surpassed Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 13 cents per share.
The New York-based company posted revenue of $66.5 million in the period, also beating Street forecasts. Seven analysts surveyed by Zacks expected $63.3 million.
Same-shack sales during the quarter rose 4.5 percent. The metric measures results at locations that have been open for at least 24 months. During the first quarter they rose 9.9 percent, while in the second quarter a year ago, same-shack sales were up 12.9 percent.
Shake Shack expects full-year revenue in the range of $253 million to $256 million, up from its prior forecast of $245 million to $249 million. Analysts surveyed by FactSet forecast, on average, annual revenue of $251.9 million.
Shake Shack Inc. shares have risen more than 3 percent since the beginning of the year. They closed Wednesday at $40.87, a fall of 42 percent in the last 12 months.
After the release of the report, the stock changed hands at $37.25, down $3.62 or 8.8 percent in extended trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SHAK at http://www.zacks.com/ap/SHAK
Keywords: Shake Shack, Earnings Report