Shake Shack has increased its outlook after recording a strong third quarter with double-digit revenue growth and higher same-store sales.
The burger chain’s total revenue jumped 14.7 per cent year on year to 316.9 million, while system-wide sales rose 12.8 per cent to $495.1 million. Same-store sales were up 4.4 per cent.
The company reported net loss $11.1 million versus net income of $8.1 million in the year-ago period. This was inclusive of a $29.1 million charge for impairments, loss on disposal of assets, and store closures.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $45.8 million, up 28 per cent year on year.
“This is the ninth consecutive quarter of positive same-Shack sales growth and restaurant-level profit margin expansion, reflecting our ongoing commitment to achieving our long-term potential,” said CEO Rob Lynch.
The chain ended the quarter with eight new company-operated Shacks, including three drive-thrus, and nine new licensed stores. It currently has more than 550 locations system-wide, including over 350 in the US.
Shake Shack has raised the lower end of its guidance for the full year, expecting total revenue to be approximately $1.25 billion and same-store sales to increase 3.3-3.6 per cent. Adjusted EBITDA is forecast to be in the range of $168-170 million.