Shake Shack

Shake Shack traffic falls 4.3 percent

Company expects same-store sales decline in 2017

Shake Shack Inc. said its same-store sales fell 1.8 percent in the second quarter ended June 28 as fewer people dined at the chain’s restaurants.

Traffic in the period declined 4.3 percent, the company said, more than offsetting an increase in price and sales mix of 2.5 percent.

Traffic and same-store sales are based on the performance of 37 Shake Shack units, which, a company spokesman pointed out, is less than half of the company-operated locations. 

Shake Shack lowered its same-store sales guidance for the year, and now expects a decline of 2 percent to 3 percent. It was the second straight lowered guidance for the New York-based fast-casual burger chain.

Still, new unit openings fueled a 37.4-percent increase in revenue in the period, to $91.3 million from $66.5 million.

Net income, meanwhile, increased 48 percent to $4.9 million, or 19 cents per share, from $3.3 million, or 15 cents.

The company added seven new systemwide locations and now operates 136 locations in the U.S. and in international markets.

“The company posted another strong quarter of growth on both the top and bottom line,” CEO Randy Garutti said in a statement. He said the company reiterated revenue growth targets for the year “even considering the same-Shack sales decline.”

 

Correction: Aug. 4, 2017 This story has been updated with the current number of total locations. 

Contact Jonathan Maze at [email protected]

Follow him on Twitter: @jonathanmaze

TAGS: Finance
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