Shake Shack reports beat on 2Q revenue and strong sales, but stock slumps after-hours

Shake Shack (NYSE:SHAK) reported a beat on second-quarter revenue and strong quarterly sales, but shares slumped in after-hours trading after rising sharply during the session on Thursday.

Shake Shack said quarterly revenue increased 27.3% to US$116.3mln, above the average revenue estimate of US$110.99mln. Shack sales climbed 28.3% to US$112.9mln and earnings per share was at US0.26, up from the average earnings per share estimate is US$0.18.

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Same Shack sales rose 1.1%. Operating income increased 10.9% to US$13.0mln, or 11.2% of total revenue.

The company said in an updated outlook for the fiscal year ending December 26, 2018, that total revenue will reach between US$446mln and US$450mln and that between 32 and 35 new domestic company-operated Shacks will be opened in fiscal 2018.

Before the results were announced, Shake Shack shares climbed US$1.84 or by 2.96% to finish Thursday at US$63.94. The stock was trading after-hours US$3.44 down or by 5.38% to US$60.60.

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Shake Shack started as a roadside burger stand in New York City which became an instant neighborhood fixture,

The company has expanded to more than 180 locations in 23 US states and the District of Columbia. It has also 70 international locations in places such as London, Hong Kong, Istanbul, Dubai, Tokyo, Moscow, and Seoul. In May, Shake Shack opened a store in Hong Kong. It will open another store in Manila, the Philippines, in 2019.

Story by ProactiveInvestors