Shake Shack jumps 10% after topping estimates

August 17 02:51 2015

Fast casual burger chain Shake Shack topped Wall Street’s earnings and revenue estimates on Monday.  The chain also announced a proposed secondary offering of 4,000,000 shares of its common stock from selling stockholders with a 30-day option for underwriters to buy up to 600,000 additional shares.

Following the report, its stock traded higher. The restaurant chain reported adjusted pro forma net income of $3.4 million, or 9 cents a share, up from $1.1 million, or 3 cents per share. Its revenue jumped 75 percent to $48.5 million from $27.7 million. Analysts expected Shake Shack to deliver 3 cents per share in quarterly earnings on $43 million in revenue, according to a consensus estimate from Thomson Reuters.

Same restaurants sales increased 12.9 percent during the quarter. Same store sales, a key industry metric, were forecast to rise 8.6 percent, according to Consensus Metrix. Since its IPO in January, Shake Shack stock has risen a steep 230 percent. The chain also revised its outlook for fiscal 2015. It now expects to earn total revenue of $171 million to $174 million. Analysts were forecasting $171 million in revenue for the year. It is also increasing its same store sales growth estimates to the mid- to high-single digits from the low- to mid-single digits.