(Reuters) - Shake Shack Inc (SHAK.N) on Thursday reaffirmed its full-year revenue forecast, disappointing Wall Street which was expecting the company to raise its guidance on the back of rising popularity of its pricey burgers and milkshakes.
FILE PHOTO: Passersby walk in front of the Shake Shack restaurant in the Manhattan borough of New York, December 29, 2014. REUTERS/Keith Bedford/File Photo
Shares of the company, which have risen 31 percent in the last three months, fell 7 percent to $59.60 in extended trading.
The company maintained its 2018 revenue forecast of between $446 million and $450 million, below analysts’ expectation of $452.3 million.
Sales at Shake Shacks open for at least two years rose 1.1 percent, in line with what analysts had expected, according to Thomson Reuters I/B/E/S.
“Should the results meet or even miss investor expectations, we would expect shares’ reaction to be strongly negative,” Cowen & Co analyst Andrew Charles wrote in a pre-earings note.
Net income attributable to the company rose to $7.6 million, or 26 cents per diluted share, in the second quarter ended June 27 from $4.9 million, or 19 cents per share, a year earlier.
Total revenue rose 27.3 percent to $116.3 million, beating the average analyst estimate of $111 million.
Excluding certain items, the company earned 29 cents per share, beating estimates of 18 cents.
Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur
