Shake Shack Inc. (SHAK - Free Report) just released its third quarter fiscal 2016 financial results, posting earnings of 15 cents per share and revenues of $74.6 million. SHAK is a #3 (Hold), and is up 9% to $36.25 per share in after-hours trading shortly after its earnings report was released.
Matched earnings estimates. The company reported earnings of 15 cents per share, matching the Zacks Consensus Estimate of 15 cents per share and growing 25% year-over-year.
Beat revenue estimates. The company saw revenue figures of $74.6 million, surpassing our consensus estimate of $69 million and increasing 40% year-over-year.
Shake Shack reported that Same-Shack sales increased 2.9%. The company opened 10 new locations, including seven domestic company-operated Shacks and three net new licensed Shacks.
Looking ahead, Shake Shack is raising its revenue guidance for fiscal 2016 to between $264 million and $265 million, with Same-Shack sales growth between 4% and 5%. The company provided a preliminary 2017 outlook as well, with total revenues expected between $348 million and $352 million and Same-Shack sales growth between 2% and 3% (including roughly 1.5% to 2% of menu price increases).
“We're executing our multi-format growth strategy with great Shacks in our current markets as well as new markets across the country. We remain encouraged by the great locations we are seeing. Based upon our updated development plans, we now expect to open 19 Shacks this year and 21 to 22 next year, representing growth of 43% and 35% in 2016 and 2017, respectively,” said Randy Garutti, CEO of Shake Shack.
Here’s a graph that looks at Shake Shack’s price, consensus, and EPS surprise:
Shake Shack is engaged in owning and operating restaurants. The company offers burgers, hot dogs, frozen custard, crinkle cut fries, beer and wine. It operates primarily in New York, New Jersey, Washington, D.C., Connecticut, Georgia, Illinois, Pennsylvania, Florida, Massachusetts, Virginia, Nevada, London, Istanbul, and Dubai. Shake Shack is headquartered in New York.
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