The company went public at the end of January, offering shares for $21 each. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 7 cents per share.
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CEO Randy Garutti said that “The third quarter marked another strong quarter in terms of same-Shack sales growth, as we continued to execute on our strategic plan and drive engagement with our guests”. It previously said it expected “same-Shack sales” growth in the mid- to high-single digit percentages. Adjusted EBITDA skyrocketed, climbing 128.3% to $13 million.
The burger chain posted revenue of $53.3 million in the period, also surpassing Street forecasts.
For 2016, the company said it expects revenue of $237 million to $242 million. Analysts had recently forecast $228 million in revenue.
Critics worry that the chain’s explosive same-store sales growth, a gauge of restaurant performance, will fade as it expands beyond dense urban areas.
Those sales include the results from just 16 domestic company-operated units open for 24 months or longer.
TripAdvisor’s GAAP net income was 51 cents per share or $74 million, compared to last year’s 37 cents per share or $54 million.
“Based on where the stock is trading, that means these traders are essentially betting that Shake Shack will be up at least [3] percent, and likely much more, by Friday”, added the Optimize Advisors co-founder. Subscription, transaction and other revenue climbed 56% to $112 million and made up 27% of TripAdvisor’s total revenue. The company’s first location in Japan is set to open this month.
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Shares of TripAdvisor tumbled by as much as 4.7% to $79.20 per share in after-hours trades following tonight’s earnings report.
