Shake Shack stock rises after earnings beat

Big beat from Shake Shack
Big beat from Shake Shack

Shake Shack topped earnings and revenue estimates on Thursday. The burger chain also raised its outlook and topped sky-high expectations for sales at established restaurants.

The fast casual burger chain reported 12 cents per share in adjusted earnings, up from 3 cents.

Revenue grew 67.4 percent to $53.3 million, from $31.8 million in the comparable period.

Analysts forecast Shake Shack would deliver earnings per share of 7 cents and $47 million in revenue, according to Thomson Reuters estimates.

Following the report, Shake Shack jumped 4 percent in extended trade. (Track shares here.)

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Same store sales shot up 17.1 percent. System-wide same store sales were expected to jump 10.6 percent, according to Consensus Metrix. Just 16 Shake Shack locations were included in this comparable base of the company's current total of 78.

Since its IPO in January, Shake Shack stock performance has been volatile. It has fallen nearly 50 percent from highs hit in May.

For the current fiscal year, Shake Shack raised its outlook. It now expects revenue to come in at $189 million to $190 million. This is above the average analyst estimate of $180 million. Same-store sales are forecast to growth between 11 percent and 12 percent.

Since opening its first location in 2004 in New York, the restaurant has grown to include locations in 12 states and D.C. in addition to international locations.

During the company's conference call, CEO Randy Garutti said its chicken sandwich called the ChickenShack "has shown strong early results" and described guest feedback as "overwhelmingly positive" during its test in Brooklyn restaurants.

"Day by day, the team is learning what chicken could mean" for the company, he added.

Speaking about labor costs, Garutti said he expects rising wages to remain a "headwind" for the chain and industry.