Investors Eat Up Shake Shack's Q1 Report

Shake Shack Inc SHAK beat Q1 estimates with non-GAAP EPS of $0.08 beating estimates of $0.05.

Total revenue increased a whopping 43.3 percent to $54.2 million, along with a 44.7 percent increase in sales to $52.2 million. Same-store sales increased 9.9 percent for Q1 2016 versus 11.7 percent in Q1 2015.

General and administrative expenses decreased to $6.9 million Q1 2016 from $18.4 million Q1 2015.

Updated Outlook

For the fiscal year ending December 28, 2016:

• Updated total revenue between $245-249 million vs. $237-242 million
• Updated same-store sales to grow between 4-5 percent vs. 2.5-3 percent
• Updated 16 vs. 13 new domestic company-operated Shacks to be opened in 2016
• Seven licensed Shacks to be opened under Company license agreements in U.K., Middle East, and Japan
• About 75 to 100 basis points vs. previous 100 to 150 basis points of deleverage in labor and related expenses as a percentage of Shack sales on a year-over-year basis

Shake Shack share popped 4 percent to $35.68 after the close.