Shake Shack Shares Surge On Upbeat Q1 Results

Shares of Shake Shack Inc SHAK jumped around 9 percent in after-hours trading after the company reported stronger-than-expected results for the first quarter. The New York-based company posted a quarterly net loss of $12.7 million, or $1.06 per share, versus net income of $1.1 million, or $0.04 per share, in the year-ago period. Its adjusted pro forma net income climbed to $0.04 per share from $0.02 per share. Total revenue gained 56.3 percent year-over-year to $37.8 million from $24.2 million. However, analysts were expecting a loss of $0.03 per share on revenue of $33.91 million. The average estimate among 13 Estimize users was for a loss of $0.01 per share and revenue of $34.15 million. Shack sales climbed 59.2 percent to $36.0 million, while same-Shack sales rose 11.7 percent. Licensing revenue for the first quarter gained 13.2 percent to $1.8 million. Average weekly sales for domestic company-operated Shacks rose 7.2 percent year-over-year to $89,000 from $83,000. Shack-level operating profit rose 78.3 percent year-over-year to $9.3 million in the first quarter. Adjusted EBITDA jumped 94.0 percent year-over-year to $7.0 million in the quarter. Randy Garutti, Chief Executive Officer of Shake Shack, stated, "We are pleased to have continued our strong momentum through the first quarter. During the quarter we opened three new Shacks as we entered Baltimore, Maryland in the Inner Harbor, and deepened our roots in the Boston market with Shacks opening on Newbury Street in the heart of the historic Back Bay neighborhood and in Dedham, MA at Legacy Place. Our strong track record of opening successful Shacks in both the United States and internationally continues to demonstrate the global appeal of Shake Shack and validates our belief in our significant whitespace opportunity." Shake Shack projects FY15 sales of $161 million to $165 million, versus analysts' estimates of $165 million. It also expects same-Shack sales to rise in the low to mid single digits. Shake Shack shares jumped 8.97 percent to $74.49 in the after-hours trading session.