Shake Shack raises revenue guidance after a hearty Q2.
Shake Shack investors are having a great week so far…
The burger chain’s stock rose 5% in after-hours trading on Monday after releasing its Q2 earnings report. The company beat Wall Street’s expectations for revenue, earnings per share, and same-store sales this quarter.
Shake Shack also increased its full-year revenue guidance. The company now expects revenue between $585 million and $590 million, up from the previous estimate of $576 million to $582 million.
What to Know About the Earnings Report
Here’s an overview of the key points from Shake Shack’s Q2 earnings report:
- Total revenue increased by 31.3% to $152.7 million
- Shack sales increased by 31.0% to $147.9 million
- Same-Shack sales increased by 3.6%
- Adjusted EPS of 27 cents
Shake Shack CEO Randy Garutti addressed the report, saying, “… we are pleased to report continued strong momentum into the second quarter across all areas of the business. System-wide sales increased 33.2%, total revenue grew by 31.3% and adjusted EBITDA increased 18.5%, driven by positive same-Shack sales of 3.6% with traffic growth of 1.3%. Our digital channels, including delivery, were a key contributor to these results.”
In addition to boosting its full-year revenue guidance, Shake Shack now also expects its full-year same-store sales to grow by 2%.
Where Does Shake Shack Go From Here?
The company’s Q2 earnings present a lot to be happy about for both investors and the company itself. In addition to beating earnings estimates, Shake Shack has plans in place to continue to increase revenue and sales throughout 2019.
Shake Shack also announced on Monday its plans to partner with GrubHub to offer delivery services. The partnership will be tested in New York, Chicago, New Jersey, and Connecticut before being rolled out in about 150 U.S. locations.
In the Q2 earnings release, Garutti stated, “To further strengthen our ongoing digital evolution, and as a part of our focus on accessibility and convenience for our guests, we’re pleased to announce an integrated delivery partnership with Grubhub, which will be rolled out across the system over the remainder of this year and into early next.”
Shake Shack is currently experiencing incredible growth, and the company hopes to double-down on this growth by expanding accessibility and appeal through GrubHub’s delivery services.
