Shake Shack Inc.’s stock soared after hours Wednesday after the New York-based burger chain bested investor expectations for revenue and earnings.
Revenue at the fast-casual burger chain increased 40 percent, to $74.6 million, in the third quarter ended Sept. 28, from $53.3 million in the same period a year ago. Net income more than doubled to $3.8 million, or 15 cents per share, from $1.5 million, or 10 cents per share the previous year.
Both numbers bested analyst expectations, and Shake Shack’s stock rose nearly 9 percent in after-hours trading.
“Shake Shack’s Q3 performance demonstrates the continued strength and opportunity of our brand,” Shake Shack CEO Randy Garutti said in a statement.
Same-store sales in the period increased 2.9 percent. Shake Shack also raised its outlook for revenue for the year, as well as its development. The company now expects 19 new domestic locations to open this year, an increase from 18 previously expected. Shake Shack opened seven locations in the U.S., and now has a total of 105 locations, including 58 domestic company locations.
Shake Shack expects to open 21 or 22 new locations next year.
“We’re executing our multi-format growth strategy with great Shacks in our current markets as well as new markets across the country,” Garutti said. “We remain encouraged by the great locations we are seeing.”