Shake Shack Inc. (NYSE: SHAK) reported its first quarter financial results and surpassed analysts’ estimates in both revenue and earnings. The company saw its shares surge by 19.5 percent shortly after the opening bell.
For the first quarter, Shake Shack reported revenue of $99.1 million, increasing 29.1 percent and beating analysts’ estimates of $96.78 million. The company reported an adjusted EPS of $0.15, topping estimates of $0.08.
“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.” Randy Garutti, Chief Executive Officer of Shake Shack, “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.
For the quarter, the New York founded fast food chain reported shake sales of $96.1 million, increasing 29.6 percent year over year. Same-shack sales increased by 1.7 percent versus a 2.5 percent decline the same quarter last year.
Shake Shack’s average weekly sales domestically decreased to $81,000 in the quarter compared to $86,000 the same quarter last year.
For 2018, Shake Shack is forecasting revenue between $446 million and $450 million, slightly higher from its previous forecast of $444 million to $448 million, while same-shack sales fall in between 0 percent to 1 percent year over year.
The company expects to open 32 to 35 new chains in the U.S. along with 16 to 18 internationally as it tries to achieve its goal of 450 chains by the end of 2020. The company is looking to focus on Asia after opening its first Chinese location in Hong Kong on Tuesday.
“We are committed to digital innovation to better connect with our guests, delivering ongoing menu innovation, and investing in our people and infrastructure to execute on the significant long-term opportunity ahead." Garutti concluded.