Shake Shack reported revenues for the first quarter ending March 29, 2017.
The NY-based deluxe hamburger chain said total revenue increased 41.7% to $76.7 million in the quarter on the strength of new openings, but same-store sales declined 2.5%. The news sent the company’s stock down 2% in after-hours trading on Thursday.
The chain said it had 13 net system-wide restaurant openings, including seven domestic company-operated Shacks and six net licensed Shacks.
Randy Garutti, Chief Executive Officer of Shake Shack, said, “We’re proud of our nearly 42% total revenue growth and 29% Adjusted EBITDA growth in the first quarter, adding 13 new system-wide Shack openings. New company-operated Shack growth represented approximately $24 million of increased revenue this quarter, offset by a decrease in same-Shack sales. We are clearly dissatisfied with our comp result in Q1, but as a reminder our small comp base is made up of only 32 Shacks, the majority of which exist in the Northeast region which was most affected by cold weather and the holiday shift in March. Looking into the remainder of the year, we’re increasing our development schedule and overall revenue expectations, despite the relatively small impact the comp base has on the overall Shack story. We remain committed to executing our strategy of growing in premier locations, investing in our teams and delivering a great guest experience. We are extremely pleased with the early results of the Shack App and this is a key component of our long-term strategy to meet our guests whenever and wherever they want their Shack.”
Shake Shack reported net income of $2.5 million in the quarter. The company projects revenue growth at stores already open to be flat, compared to 2-3% from last year. The company plans to open 23-24 new Shake Shacks in the U.S. this year along with 12 licensed locations.