Shake Shack Stock Pops After Strong Sales and Guidance

Shake Shack (SHAK) shares skyrocketed aft nan institution posted better-than-anticipated results and gave an upbeat forecast arsenic it benefited from higher prices. 

The burger-and-milkshake concatenation reported second-quarter adjusted net per stock (EPS) of $0.27, pinch gross rising 16% to much than $316 million. Both exceeded forecasts. Same-store sales roseate 4%, beating estimates, driven by improvements successful postulation complete nan first 4th arsenic good arsenic a much favorable operation of customer orders.

Shares of Shake Shack roseate immoderate 16% successful caller trading and are up astir 37% year-to-date.

Traffic fell 0.8%, which nan institution blamed connected slowing trading successful June, but turned affirmative successful July. The institution said challenges to postulation successful nan New York City area continued.

CEO Rob Lynch, who moved from Papa John's (PZZA) successful May, said Shake Shack group records for sales, adjusted earnings earlier interest, taxes, depreciation, and amortization (EBITDA), and free rate flow. He said nan concatenation remained connected way to meet its 2024 financial goals, including gross maturation of 14% to 15% for nan year. 

The institution predicted that it will execute affirmative free rate travel for nan year, nan first clip it’s done truthful since 2017.