Thursday 12 May 2016 9:54 pm

Flipping good (sort of): Shake Shack shares up – after plummeting 60 per cent in a year – with expectation-beating results

Shake Shack’s share price rose nearly four per cent in after-hours trading with the fast food company beating analysts’ expectations.

The figures

Shake Shack’s quarterly revenue was up 43.3 per cent to $54.2m (£37.5m), above an estimate of $52.06m, according to Street Insider.

Meanwhile, earnings per share (EPS) in the first quarter hit $0.08, above expectations of $0.05.

Same-Shack sales increased by 9.9 per cent year on year during the period.

And adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) was up 54.4 per cent to $10.8m.

Why it’s interesting

Shake Shack’s share price is up in after-hours trading by more than four per cent to $35.85.

But it has been a tough year for the fast food chain.

Its current share price is down by more than 60 per cent on 21 May last year when it was above $92.

[charts-share-price id="256"]

Shake Shack first floated in New York in January 2015 with shares priced at $21.

What the company said

Chief executive Randy Garutti: With the extraordinary results in Q1, we are off to a strong start to the year. We have continued to execute on our growth strategy and drive record results and engagement with our guests, while making crucial investments in our team and our Shacks. The recent launch of the Chick’n Shack at all domestic company-operated locations has driven traffic growth and created an entirely new way our guests can enjoy the Shack. During the quarter, we opened three domestic company-operated Shacks including our first Shack in in the heart of , which has been one of the strongest openings in our 12-year history.

We are incredibly excited about the 2016 pipeline and have now raised our revenue expectations and increased guidance to open at least 16 domestic company-operated Shacks this year. We’re looking forward to a great year ahead.