Shake Shack (SHAK) posted stronger-than-expected sales after the bell on Thursday and boosted guidance.
Same-store sales, a closely-watched industry metric, grew 3.6% during the quarter, exceeding analysts’ expectations for 0.8% growth.
Shares of Shake Shack surged more than 6% in after-hours trade.
Shake Shack reported adjusted earnings of 13 per share, which was in line with consensus estimates. Revenue also exceeded estimates at $128.6 million. Analysts were anticipating revenue of $127.22 million.
The burger chain raised it guidance for the rest of the year. Shake Shack expects revenue between $576 million to $582 million, up from the previously anticipated range of $570 million to $576 million. In addition, the company expects full-year same-store sales growth of 1% to 2%, up from the flat to 1% growth that was previously projected.
“Based on our first quarter results, we are raising both our overall revenue and same-Shack Sales expectations for the year,” CEO Randy Garutti said in a statement. “We are on track to open 36 to 40 new company-owned Shacks, making our largest class yet. We also plan to open 16 to 18 net new licensed Shacks with our international growth focused on Asia and our new markets of mainland China, Singapore, the Philippines and Mexico. 2019 is off to a solid start as we remain focused on the execution of our key strategic commitments that will continue to drive growth.”
Garutti also credited growth in its digital channels and said he sees further significant opportunities in that space.
Shake Shack will be holding its earnings conference call at 5 p.m. ET.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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