Shake Shack Plunges as First-Quarter Sales Miss Expectations
(Bloomberg) -- Shake Shack Inc. fell in late trading after the burger chain’s first-quarter revenue fell short of estimates, a sign that restaurants are still suffering as consumers stay away from city centers.
The company’s revenue of $155.3 million in the quarter was below Wall Street’s expectations, according to estimates compiled by Bloomberg. Weekly sales in the period were $64,000 in the U.S. -- up from the end of 2020 but still down from a year earlier.
“Many major urban markets, such as Manhattan, remain materially below pre-Covid levels, while office, events and tourism traffic return,” Chief Executive Officer Randy Garutti said in a statement. “The return of business traffic, events and tourism to cities like NYC, Chicago and L.A. will be key to our full recovery.”
Shake Shack fell as much as 12% to $92.69 in late trading in New York Thursday. Through the close, the shares had climbed 25% this year.
©2021 Bloomberg L.P.