Shake Shack slides after same-store-sales miss, and guidance disappoints
So called same-shack-sales for the quarter fell by 1.8%, missing the Bloomberg consensus forecasts of 0.0% growth. The fast-casual burger chain said its full-year comparable sales of -2% to -3%, versus its prior forecast of flat.
Shake Shack reiterated its full-year revenue forecast between $351 million and $355 million. Wall Street analysts surveyed by Bloomberg were looking for revenue guidance of $356.8 million.
"Even considering the same-Shack sales decline, coming from our small base of 37 Shacks, we're reiterating our revenue growth targets for the year, our development schedule and the strength of our Shack-level operating profit," CEO Randy Garutti said in the earnings release.
Shake Shack announced adjusted earnings of $0.20 per share for the quarter, beating the Wall Street estimates of $0.16. The company also reported revenue of $91.32 million, topping the $89.5 million that was expected.
Shares of Shake Shack were down 7.38% year-to-date before the post-earnings slide.
