Shake Shack (NYSE:SHAK) has reported quarterly earnings on Monday, beats analysts expectations on earnings and revenue, but the stock fell nonetheless due to the sales outlook, which reported by the company was lower than expected. Shares of the company fell more than 6% during Monday’s after-market trading hours.
The popular fast food/ casual dining chain has reported earnings per share of 8 cents for the fourth quarter and revenue of $51 million.
Shake Shack quarterly report has shown that the chain’s same-store sales have increased 11% during the quarter, more than the 7% which were estimated by analysts. Where the company has disappointed is in its forecast, which is often what investors are paying most attention to. Still, investors may have overreacted to this earnings report since Shake Shack’s sales forecast missed estimates by very little. The company said it expected “same-shack” sales growth between 2.5 and 3 percent — analysts had on average expected 3.1 percent growth.
This year Shake Shack had an imported addition to its menu – the Chicken Shack, which launched in January. The company’s CEO, Randy Garutti, said in a statement, “It is likely the most important menu addition we’ve made since Shake Shack began… While it’s still too early to know exactly what chicken will mean for us systemwide, we are hopeful it will prove lucrative to sales, traffic, average check and food costs.”