Shake Shack stock drops as Q1 earnings miss estimates

Published 01/05/2025, 12:22
Shake Shack stock drops as Q1 earnings miss estimates

Investing.com - Shake Shack Inc . (NYSE:SHAK) reported first-quarter earnings that fell short of analyst expectations, sending its shares down 5.1% in after-hours trading.

The fast-casual restaurant chain posted earnings of $0.10 per diluted share, missing the analyst estimate of $0.17 by $0.07. Revenue for the quarter came in at $320.9 million, below the consensus estimate of $330.33 million but up 10.5% YoY.

Same-Shack sales increased by a modest 0.2% compared to the same period last year.

Despite the earnings miss, Shake Shack reported net income of $4.5 million, more than doubling from $2.2 million in the first quarter of 2024. The company’s restaurant-level profit reached $64.2 million, representing 20.7% of Shack sales.

The company’s system-wide sales grew 10.4% to $489.4 million, while operating income improved to $2.8 million from $0.0 million in the prior-year quarter. Adjusted EBITDA increased 13.5% to $40.7 million.

Shake Shack also expanded its licensed operations, opening seven new licensed Shacks during the quarter.

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