Shake Shack Swings To Q1 Loss, Lifts Outlook; Stock Up 5%

(RTTNews) - Burger chain Shake Shack Inc. (SHAK) Wednesday reported a swing to first-quarter loss, as higher revenues were offset by charges related to IPO. Moving ahead, the company raised it revenue guidance for the full year. Shares of the company gained over 5 percent in the after-hours trade, following the news.

New York-based Shake Shack reported a first-quarter loss of $12.7 million or $1.06 per share, compared to a profit of $1.1 million or $0.04 per share last year year. The loss included $13.2 million of after-tax expenses associated with the initial public offering.

Adjusted net income for the quarter was $1.3 million or $0.04 per share. On average, eight analysts polled by Thomson Reuters expected a loss per share of $0.03 for the quarter. Analysts' estimates typically exclude special items.

Shake Shack's first-quarter revenues, which includes Shack sales and licensing revenues, increased 56.3 percent to $37.81 million from $24.20 million last year.

Shack sales increased 59.2 percent to $36.0 million driven largely by opening of new Shacks and same-Shack sales growth of 11.7 percent. Analysts had a consensus revenue estimate of $33.91 million for the quarter.

Looking forward to the full year 2015, the company now expects revenues of $161 million to $165 million, up from its prior outlook of $159 million to $163 million. Analysts currently expect revenues of $164.80 million for 2015

Shake Shack, owned by Union Square Hospitality Group, currently has 66 locations, of which 34 were domestic company-operated. Shake Shack initially began as a hot-dog cart in Madison Square Park in New York. In 2004, restaurateur Danny Meyer opened a kiosk-style Shake Shack within the park.

SHAK closed Wednesday's trading at $68.36, up $2.73 or 4.16%, on the NYSE. The stock further gained $4.02 or 5.88% in the after-hours trade.