Shake Shack SHAK shares surged over 8 percent after hours following a strong Q3 report, which saw EPS of $0.15 beat expectations by a penny. Sales were $74.6 million compared with estimates for $69.33 million.
Same store sales rose 2.9 percent year-over-year and the company reported seven new domestic company-operated stores opened during the quarter.
Shake Shack operating profit, a non-GAAP measure, increased 32.6 percent to $20.7 million for the third quarter of 2016 from $15.6 million in the same quarter last year.
Shake Shack raised and narrowed full-year 2016 revenue guidance to a range of $264 million to $265 million from a range of $253 million to $256 million. The company expects same-store sales to grow 4-5 percent.
Revenues for full year 2017 are expected to be $348 million to $352 million. Same-store sales guidance is for 2-3 percent, which includes roughly 1.5 to 2 percent menu price increase "to be taken in January."
CEO Randy Garutti said, "We delivered another quarter of solid results, with 40% growth in total revenue and a 28.8% Shack-level operating profit margin. We also hit some important milestones this quarter, including our 100th worldwide Shack opening and our first $1 million sales day in our domestic company-operated Shacks."
Wall Street liked the quarter as shares rose almost $4.00 after hours or more than 11 percent to $36.88 as of this writing.
Shack shares closed Wednesday's regular session up $0.70 or 2.15 percent to $33.26.
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