Shake Shack Inc. revenues and profits surged in the first quarter, the company said Thursday, as a new chicken sandwich generated sales and traffic in the first quarter.
Same-store sales rose 9.9 percent in the quarter ended March 30. Revenue increased 43.3 percent, to $54.2 million, from $36 million the previous year. And restaurant-level operating profit increased 58.6 percent, to $14.7 million, or 28.2 percent of sales.
“With the extraordinary results in Q1, we are off to a strong start to the year,” Randy Garutti, Shake Shack CEO, said in a statement. “We have continued to execute on our growth strategy and drive record results and engagement with our guests while making crucial investments in our team and in our [restaurants]. The recent launch of the Chick’n Shack at all domestic company-operated locations has driven traffic growth and created an entirely new way our guests can enjoy the Shack.”
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Net income in the quarter was $1.5 million, or 7 cents per share, rising from a loss of $12.7 million, or $1.06 per share, in the same period a year ago.
Shake Shack stock rose more than 5 percent in after-hours trading Thursday.
The company increased its projections for sales growth and new unit openings for the year. Shake Shack now expects same-store sales to rise between 4 percent and 5 percent this year, an increase from 2.5 percent to 3 percent. It also expects higher revenues, of $245 million to $249 million, from $237 million to $242 million.
Shake Shack now expects to open 16 new locations in the U.S. this year — it had previously said it would open 13 new units.
The company opened one new restaurant in California, two in Arizona and one in Oman in the quarter.
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