Fast food chain Shake Shack Inc (NYSE:SHAK) late Wednesday offered a very positive growth forecast through next year, sending its shares soaring in late trading.
The New York-based company reported Q3 EPS of $0.15, beating out Wall Street’s view of $0.14. Revenue surged 40% from last year to $74.6 million, easily topping analysts’ $69.15 million view.
Same-store sales rose 2.9% in the third quarter of 2016, which was down significantly from 17.1% growth seen in Q3 of last year.
Looking ahead, Shake Shack boosted its full-year sales outlook to $264-265 million, up from a prior range of $253-256 million. Analysts are looking for $258.18 million in revenue for the year. The company also reaffirmed its same-store sales forecast of +4-5% growth. SHAK also expects 19 news company owned stores in 2016, and 10 net new licensed stores. Those estimates are up from a prior outlook of 18 and 7, respectively.
For 2017, the company forecast revenues of $348-352 million, which would easily beat analysts’ forecast for $334.43 million. It expects 2017 same store sales to rise 2-3%, and to open 21-22 and domestic company-operated stores and 10 new licensed stores in the fiscal period. Its operating profit margin for the year is 26.5% to 27.5%.
The company commented via press release:
“Shake Shack’s Q3 performance demonstrates the continued strength and opportunity of our brand. We delivered another quarter of solid results, with 40% growth in total revenue and a 28.8% Shack-level operating profit margin. We also hit some important milestones this quarter, including our 100th worldwide Shack opening and our first $1 million sales day in our domestic company-operated Shacks.”
Shake Shack shares surged $3.13 (+9.41%) to $36.39 in after-hours trading Wednesday. Prior to today’s report, SHAK had fallen 16% year-to-date.