Shake Shack fell in after-hours trade Thursday after the burger chain reported a same-store sales decline that sharply missed expectations.
The company said comparable-restaurant sales fell 0.7 percent during the quarter. Analysts polled by Refinitiv had projected sales at restaurants open at least 12 months to grow 1.1 percent.
Shake Shack said the decline includes a 4 percent decrease in guest traffic.
Still, that’s an improvement from the 1.6 percent same-restaurant sales decline in the comparable year ago quarter.
That news outweighed better-than-expected earnings and revenue. The stock fell as much as 6 percent after the close.
Here’s how Shake Shack did compared to consensus estimates from Refinitiv:
- Earnings: 21 cents per share, vs. 13 cents per share
- Revenue: $119.6 million vs. $117 million
In the year-ago quarter, Shake Shack reported adjusted earnings of 17 cents a share on revenue of $94.6 million.
The company also raised its full-year revenue outlook. Shake Shack said it now expects full-year revenue between $450 million and $452 million. It previously forecast revenue between $446 million and $450 million for 2018.
CEO Randy Garutti said Shake Shack expects to open an additional 36 to 40 domestic company-operated restaurants in 2019.
He also said the company entered into licensing agreements to open more than 50 Shake Shacks in the Philippines, Mexico and Singapore over the next decade. Shake Shack expects to open its first restaurants in Singapore and Mexico in 2019.
As of their Thursday close, shares of the burger chain have gained more than 26 percent so far in 2018.
This story is developing. Please check back for updates.