Shake Shack Inc. saw same-store sales rise 12.9 percent in the second quarter, the company said Monday, prompting the New York-based burger chain to increase its sales estimates for the year.
On a two-year basis, same-store sales increased nearly 18 percent in the second quarter ended July 1.
“Our team continues to execute on our plan, and we have delivered another strong quarter of outstanding operational results,” Shake Shack CEO Randy Garutti said in a statement.
The company also announced plans for a secondary offering of its common stock on Monday. Shareholders plan to sell an additional 4 million shares.
Shake Shack stock rose nearly 8 percent in after-hours trading on the news. The stock has more than tripled from its January IPO price of $21 a share, but remains below its peak of more than $94 a share, reached in May.
Shake Shack revenue rose 74.7 percent in the period, to $48.5 million, from $27.7 million.
Net income in the period fell 42 percent, to $1.1 million, or 8 cents per share, from $1.9 million, or 6 cents per share. But adjusted to factor out one-time items, net income more than tripled, to $3.4 million, from $1.1 million in the same period a year ago.
Unit-level operating profit more than doubled, to $14.1 million, or 30.3 percent of total sales, the company said.
Shake Shack opened five locations, three of them domestic and two international units. The company now has 71 locations systemwide, including 37 domestic company-operated units, five domestic licensed units and 29 international licensed locations.
The company now expects to open 12 new domestic units in 2015 and expects to open at least 12 units a year.
In addition, Shake Shack expects total revenue for the year to be $171 million to $174 million, an increase from a previous estimate of $161 million to $165 million. And it expects its same-store sales for the full year to be in the mid- to high-single digits. It had previously expected same-store sales growth to be in the low- to mid-single digits.
Same-store sales are a key measurement of performance in the restaurant industry because they measure how well existing units are increasing revenue. But Shake Shack’s small size and rapid growth means there are few units used to measure that growth. Only 16 Shake Shack locations are used to measure its same-store sales figure.
Contact Jonathan Maze at [email protected].
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