Shake Shack Posts Upbeat Q3 Results, Issues Strong Revenue Forecast
Shake Shack Inc (NYSE: SHAK) reported better-than-expected results for the third quarter and raised its revenue forecast for the year on Thursday.
The New York-based company reported a quarterly profit of $1.53 million, or $0.10 per share, versus a year-ago profit of $504 million, or $0.02 per share. Adjusted pro forma net income jumped to $0.12 per diluted share from $0.03 per share.
Its revenue climbed 67.4 percent year-over-year to $53.3 million. However, analysts were expecting a profit of $0.07 per share on revenue of $47.5 million.
Shack sales surged 70.0 percent to $51.3 million, while same-Shack sales climbed 17.1 percent for the quarter.
Shack-level operating profit jumped 105.7 percent to $15.6 million, while adjusted EBITDA gained 128.3 percent to $13.0 million.
Randy Garutti, Chief Executive Officer of Shake Shack, stated, "The third quarter marked another strong quarter in terms of same-Shack sales growth, as we continued to execute on our strategic plan and drive engagement with our guests. We opened four domestic company-operated Shacks during the quarter and, as previously announced, we will be officially opening our first Shack in Tokyo in the remarkable Meiji-Jingu Gaien park this November, ahead of schedule. 2015 has been an exceptional year for us and, with the opening of two additional domestic company-operated Shacks subsequent to the quarter, we have delivered on our target to open 12 new domestic company-operated Shacks for 2015."
The company now expects FY15 revenue of $189 million to $190 million, versus prior forecast of $171 million to $174 million. The company now projects same-Shack sales to rise 11 percent to 12 percent.
For 2016, Shake Shack projects revenue of $237 million to $242 million, versus analysts' estimates of $228 million. It expects same-store sales to rise 2.5 percent to 3 percent.
Shake Shack shares surged 5.36 percent to $53.85 in the after-hours trading session.
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