Shake Shack Shares Surge 10% After Exceeding Earnings Expectations

NEW YORK - Shake Shack Inc. (NYSE:SHAK) reported third-quarter earnings that exceeded expectations on Thursday, leading to a 10% rise in the company's shares in after-hours trading. The fast-casual restaurant chain announced an adjusted earnings per share of $0.25, surpassing analysts' estimates of $0.19. Quarterly revenue increased by 14.7% year-over-year to $316.9 million, slightly beating the consensus expectation of $315.76 million. Same-store sales rose by 4.4% compared to the same period last year.

Shake Shack's CEO, Randy Garutti, commented, "Our strong third-quarter results demonstrate the ongoing 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 includes a $29.1 million expense for asset impairment, asset disposal losses, and store closures. Adjusted EBITDA rose by 28% year-over-year to $45.8 million.

The restaurant-level profit margin was 21% of Shack sales. During the quarter, the company opened eight new company-operated locations, including three drive-thru, and nine new licensed Shacks.

Shake Shack did not provide specific guidance for the next quarter or fiscal year. The strong earnings report and the market's positive response indicate that investors remain optimistic about the company's growth trajectory and operational performance.