The shares Shake Shack Inc
) surged after reporting strong revenue
for the first the first quarter of 2015. The stock price of the company closed at $68.36 per share, up by 4.16%. Shake Shack increased further (+8.19%) to $73.96 per share during the extended hours trading, around 4:32 P.M. in New York on Wednesday.
Shake Shack financial results
Shake Shack reported that its total revenue increased 56.3% to $37.8 million for the first quarter. During the same period last year, the modern day burger chain recorded $24.2 million in revenue. The company said its Shack sales grew 59.2% to $36 million.
During the quarter, Shake Shack generated $1.8 million in licensing revenue, up 13.2% from $1.6 million in the same period a year ago. Its same-shack sales rose 11.7%.
Shake Shack said its average weekly sales for domestic company operated Shacks were $89,000 for the first quarter, up from $83,000 in the same period last year. The increase was primarily due to increased menu prices, favorable shifts in sales mix from menu innovation, and strong performance of several Shacks that were opened in the latter part of 2014.
The increase was primarily due to the $12.8 million non-recurring compensation expenses related to the vesting of equity awards after the completion of its IPO and $0.6 million of incremental IPO-related expenses.The company said its non-GAAP operating profit increased 78.9% to $9.3 million. Its operating profits grew 270 basis points to 25.7%. Shake Shack said its general and administrative expenses were $18.4 million, up from $3.4 million last year.
Shake Shack posted a 94% increase in non-GAAP EBITDA to $7 million and a 360 basis points increase in adjusted EBITDA margins to 18.5%.
The company posted a net loss of $12.7 million or $1.06 per diluted share in the first quarter. Shake Shack reported a net income of $1.1 million or $0.04 per share in the same period a year ago. The company incurred losses in the first quarter due to $13.2 million after-tax expenses related to its IPO.
Shake Shack said its non-GAAP net income was $1.3 million or $0.04 per fully exchanged and diluted share in the first quarter.
Shake Shack expected to generate total revenue of around $161 million to $165 million for the fiscal 2015.
The company estimated that it will achieve low to mid-single digits same-shack sales growth, and to open at least ten new domestic company-operated shacks this year.
Five international licensed Shacks are also expected to under its license agreements in U.K. and the Middle East.