NEW YORK - Shake Shack Inc . (NYSE:SHAK) reported better-than-expected third quarter earnings on Thursday, sending its shares up 10% in after-hours trading.
The fast-casual restaurant chain posted adjusted earnings of $0.25 per share, surpassing analyst estimates of $0.19. Revenue for the quarter rose 14.7% YoY to $316.9 million, slightly above the consensus forecast of $315.76 million. Same-Shack sales increased 4.4% compared to the same period last year.
Shake Shack's CEO Randy Garutti commented, "Our strong third quarter results demonstrate the continued momentum in our business as we execute on our strategic growth initiatives."
The company reported a net loss of $11.1 million, or -$0.26 per share, which included a $29.1 million charge for impairments, loss on disposal of assets, and Shack closures. Adjusted EBITDA grew 28% YoY to $45.8 million.
Restaurant-level profit margin came in at 21% of Shack sales. The company opened eight new company-operated locations during the quarter, including three drive-thrus, and nine new licensed Shacks.
Shake Shack did not provide specific guidance for the upcoming quarter or fiscal year. The solid earnings report and positive market reaction suggest investors are optimistic about the company's growth trajectory and operational performance.
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