Shake Shack Rises After New Stores Help Profit Top Estimatesby
Shake Shack Inc. rose as much as 8.6 percent after posting first-quarter profit and sales that topped analysts’ estimates, helped by new locations and the introduction of a chicken sandwich.
Profit was 8 cents a share, excluding some items, in the quarter through March 30, the New York-based company said in a statement Thursday. Analysts projected 5 cents a share, on average. Sales rose 43 percent to $54.2 million, beating the $52.2 million average estimate.
Chief Executive Officer Randy Garutti said the recent addition of the Chick’n Shack has driven traffic to the restaurant chain. Shake Shack’s system expanded to 88 restaurants at the end of the quarter, up from 66 a year earlier. The company also boosted its forecast for sales this year. It now sees revenue of as much as $249 million, up from a previously projected maximum of $242 million.
The shares rose as high as $37.20 in New York on Friday, the biggest intraday gain since Jan. 21. Shake Shack had slid 13 percent this year through Thursday’s close.