Earnings Results: Shake Shack stock rises, though revenue, outlook fall short of Street expectations
Shake Shack Inc. shares rose in the extended session Thursday after the fast-food restaurant chain’s below-Street-consensus revenue and outlook overshadowed a better-than-feared loss on the quarter.
shares gained 5.3% after hours, following a 2.9% rise in the regular session to close at $78.08.
The company posted a third-quarter loss of $2.2 million, or 6 cents a share, compared with a loss of $5.6 million, or 15 cents a share, in the year-earlier quarter. On an adjusted basis, Shake Shack lost 5 cents a share, versus adjusted earnings per share of 11 cents a year prior.
Shake Shack’s revenue for the quarter rose to $193.9 million from $130.4 million.
Analysts polled by FactSet had forecast a loss of 6 cents a share on revenue of $197.5 million, based on the company’s forecast of revenue between $194 million to $200 million.
“We saw benefits to our urban Shacks as more of our guests returned to offices, events, commuting and tourism-based locations,” said Randy Garutti, Shake Shack chief executive, in a statement. “Our suburban Shacks continue to recover and, on average, perform above 2019 levels.”
Shake Shack estimates revenue of $193.5 million to $200 million for the fourth quarter, while analysts expect $202.1 million.