Shake Shack Inc. revenues and profits surged in the first quarter, the company said Thursday, as a new chicken sandwich generated sales and traffic in the first quarter.
Same-store sales rose 9.9 percent in the quarter ended March 30. Revenue increased 43.3 percent, to $54.2 million, from $36 million the previous year. And restaurant-level operating profit increased 58.6 percent, to $14.7 million, or 28.2 percent of sales.
“With the extraordinary results in Q1, we are off to a strong start to the year,” Randy Garutti, Shake Shack CEO, said in a statement. “We have continued to execute on our growth strategy and drive record results and engagement with our guests while making crucial investments in our team and in our [restaurants]. The recent launch of the Chick’n Shack at all domestic company-operated locations has driven traffic growth and created an entirely new way our guests can enjoy the Shack.”
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Net income in the quarter was $1.5 million, or 7 cents per share, rising from a loss of $12.7 million, or $1.06 per share, in the same period a year ago.
Shake Shack stock rose more than 5 percent in after-hours trading Thursday.
The company increased its projections for sales growth and new unit openings for the year. Shake Shack now expects same-store sales to rise between 4 percent and 5 percent this year, an increase from 2.5 percent to 3 percent. It also expects higher revenues, of $245 million to $249 million, from $237 million to $242 million.
Shake Shack now expects to open 16 new locations in the U.S. this year — it had previously said it would open 13 new units.
The company opened one new restaurant in California, two in Arizona and one in Oman in the quarter.
Contact Jonathan Maze at [email protected]
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