Shake Shack swings to loss but sales top estimates
Shake Shack Inc. (SHAK) said Thursday it swung to a net loss of $6.1 million, or 15 cents a share, in the third quarter, after net income of $11.4 million, or 31 cents a share, in the year-earlier period, weighed down by the effects of the pandemic. The hamburger chain's adjusted per-share loss came to 11 cents, narrower than the 21 cent loss consensus of FactSet analysts. Revenue fell to $130.4 million from $157.8 million, but also beat the FactSet consensus of $125.0 million. "Since our last update at the end of July, forward momentum has continued and we're encouraged to see significant improvement in both sales and profitability, with many Shacks returning to or exceeding last year's result," Chief Executive Randy Garutti said in a statement. The company has returned to its development schedule and opened 33 new restaurants in the year to date, he said. "Our pipeline for 2021 is strong, and we expect to open between 35 and 40 new company-operated Shacks, many of which will incorporate our new Shack Track and Drive Thru designs centered on the hospitality and experience Shake Shack has been known for, with an added focus on speed, convenience and the integration of our pre-ordering digital capabilities." Shake Shack is not offering guidance, because of the uncertainty created by the pandemic. Shares fell 2.8% in after-hours trade, but have gained 16% in the year to date, while the S&P 500 has gained 2.5%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 29, 2020 17:12 ET (21:12 GMT)
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