Shake Shack stock jumps 6% after burger chain says sales grew in latest quarter
A person wears a face mask outside Shake Shack Innovation Kitchen in Greenwich Village as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 27, 2020 in New York City.
Noam Galai | Getty Images
Shares of Shake Shack rose 6% in Tuesday morning trading after the company said its fiscal fourth-quarter revenue grew, following several quarters of sales declines.
The burger chain announced its preliminary sales results at the virtual ICR conference and shared more on its strategy for 2021, including its plans for digital order improvements, expanded menu offerings and new restaurant designs.
For the quarter ended Dec. 30, Shake Shack’s net sales rose 4% to $157.5 million. But its same-store sales remain under pressure, falling 17.4%, driven by the lagging recovery of its urban restaurants. In Manhattan, same-store sales plummeted 49%. Overall urban same-store sales plunged 31%, but Shake Shack’s suburban same-store sales were flat for the quarter. The company’s quarterly same-store sales exclude the 53rd week of 2020.
CEO Randy Garutti shied away from giving investors a strict timeline for the company’s recovery but said that he expects urban customers will come back when they stop working from home.
Shake Shack’s stock, which has a market value of $4.01 billion, has risen 58% in the last year, despite the company’s struggles during the coronavirus pandemic.