Shake Shack Inc. (NYSE: SHAK) saw its shares hit a multiyear high after the company reported its first-quarter financial results after the markets closed on Thursday. The burger joint said that it had $0.13 in earnings per share (EPS) on $99.1 million in revenue, which compares with consensus estimates of $0.08 in EPS on revenue of $93.34 million. In the same period of last year, it said it had EPS of $0.10 and $76.75 million in revenue.
The 29.1% revenue increase this quarter was due primarily to the opening of 24 new domestic company-operated Shacks, as well as same-Shack sales growth, which was 1.7%. Last year same-Shack sales actually decreased 2.5%.
Average weekly sales for domestic company-operated Shacks decreased to $81,000 for the first quarter of 2018, compared to $86,000 for the same quarter last year, primarily due to the addition of Shacks at lower volumes to the system.
In terms of the outlook for the 2018 full year, the company expects to see total revenues in the range of $446 million to $450 million, up from $444 million to $448 million, and same-Shack sales of 0% to 1%. The consensus estimates call for $0.46 in EPS on $448.99 million in revenue for the year.
Randy Garutti, CEO of Shake Shack, commented:
2018 is off to a strong start as we built upon our fourth quarter momentum, reporting another quarter of robust top and bottom-line growth. We delivered year over year revenue growth of approximately 29%, including a 1.7% increase in same-Shack sales and grew adjusted EBITDA by over 30%. These results were supported by the continued evolution of our digital initiatives and the strength of new and existing Shacks as we executed on our development plans.
Shares of Shake Shack closed Thursday at $47.41, with a consensus analyst price target of $42.10 and a 52-week range of $30.12 to $48.21. Following the announcement, the stock was down about 8% at $51.10 in early trading indications Friday.