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Shake Shack Trades Higher After Q2 Earnings Beat

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Shake Shack Trades Higher After Q2 Earnings Beat

Shake Shack Inc (NYSE: SHAK) shares traded higher by more than 5% after reporting a second-quarter earnings beat.

Adjusted earnings came in at 27 cents per share, beating estimates by 5 cents. Sales came in at $152.71 million, beating estimates by $3.52 million. The company also raised 2019 sales guidance from $576 million-$582 million to $585 million-$590 million.

"More than halfway through 2019, we are pleased to report continued strong momentum into the second quarter across all areas of the business. System-wide sales increased 33.2%, total revenue grew by 31.3% and adjusted EBITDA increased 18.5%, driven by positive same-Shack sales of 3.6% with traffic growth of 1.3%. Our digital channels, including delivery, were a key contributor to these results, in conjunction with a benefit from the shift in Easter timing within the second quarter," said CEO Randy Garutti.

"To further strengthen our ongoing digital evolution, and as a part of our focus on accessibility and convenience for our guests, we're pleased to announce an integrated delivery partnership with Grubhub, which will be rolled out across the system over the remainder of this year and into early next."

Highlights

  • Same-stores sales are up 3.6%
  • Total revenue grew 31.3%
  • Licensed revenue increased 42.9%

Shake Shack shares traded higher by 5.5% to $77.40 in Monday's after-hours session. The stock closed at $73.34.

Posted-In: Earnings News Guidance Restaurants After-Hours Center General Best of Benzinga

 

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