Shake Shack Inc. reported a 56.3-percent increase in revenue during the first quarter ended April 1, as the New York-based burger chain added new locations and saw same-store sales rise.
Sales at existing restaurants increased 11.7 percent in the quarter, continuing the popular fast-casual concept’s run of strong sales.
“We are pleased to have continued our strong momentum through the first quarter,” Shake Shack CEO Randy Garutti said in a statement.
The company opened three new restaurants in the quarter — one in Baltimore and two in Boston, he noted, adding that all have been successful.
“Our strong track record of opening successful Shacks in both the United States and internationally continues to demonstrate the global appeal of Shake Shack and validates our belief in our significant whitespace opportunity,” Garutti said.
Shake Shack is on track to open at least 10 new company-owned restaurants in the U.S. this year, he said, and five units in international markets. Shake Shack currently has 68 locations, including 34 company-owned units in the U.S. and another five licensed domestic locations. The company recently opened locations in New Jersey and Austin, Texas.
Shake Shack has quickly become one of the most closely watched stocks on Wall Street, even though it remains largely an industry startup. The company went public in January, more than doubled in value on its first day of trading and has seen its stock price mostly rise since then.
By May 5, Shake Shack’s stock price had nearly quadrupled from its IPO price of $21 per share, to $78.36. It has since fallen 12 percent, to just more than $68 a share, still triple its offering price.
The stock continued to increase in after hours trading, rising nearly 7 percent Wednesday afternoon.
Total revenue increased 56.3 percent, to $37.8 million, from $24.2 million in the same period a year ago. The company reported a net loss of $12.7 million, or $1.06 per share, which included $13.2 million in after-tax expenses associated with its IPO.
Operating profit increased 78.3 percent, to $9.3 million, in the quarter, from $5.2 million. As a percentage of sales, operating profit margin rose 270 basis points, to 25.7 percent. The higher profits were due largely to higher sales.
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