Shake Shack Spikes as Burger-Eaters Using Its App Boost Sales
(Bloomberg) -- Shake Shack Inc. jumped in late market trading after sales blew past estimates, prompting the restaurant chain to raise its full-year outlook.
- Same-store sales rose 3.6 percent last quarter, exceeding analysts’ projected 0.8 percent increase, according to Consensus Metrix. Shake Shack also raised its forecast for revenue and same-store sales, sending the stock up as much as 9.7 percent in late trading Thursday.
- Shake Shack is seeing success with a revamped mobile app, along with new chicken items. Warm weather in certain key areas also helped lift customer traffic 1.6 percent.
- The burger purveyor, which is working to improve digital technology and delivery, recently hired its first chief information officer. Consumers are demanding convenience and rivals are ramping up delivery service to meet their needs, meaning it could get harder from here.
- As Shake Shack expands across the U.S., it’s moving into less-dense areas and the suburbs, putting pressure on average sales per location. At the same time, it’s boosting growth abroad with as many as 18 new international locations planned for this year in markets including China and Mexico.
- The shares jumped as much as 9.7 percent in late trading in New York. The restaurant company gained 39 percent so far this year through Thursday’s close.
- For the company statement, click here.
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