Shake Shack reported better-than-expected earnings in its fourth-quarter results, but that wasn't enough to satisfy investors.
A weak outlook for fiscal 2016 sent shares down over 10 percent in after-hours trading Monday. The NYC-based burger chain expects same-store sales at existing restaurants to rise between 2.5 and 3 percent in 2016, slightly worse than what Wall Street had been anticipating. Investors have been concerned that Shake Shack won't be able to justify its staggering valuation of 100 times earnings.
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Nevertheless, Shake Shack beat Wall Street estimates by 1 cent on the bottom line and $1 million on the top line, yet fell short of the Estimize consensus. Earnings per share of 8 cents were up from a net loss in Q4 2014, while $51 million in revenue rose 46.8 percent on a year-over-year basis. Same shack sales grew a resounding 11 percent thanks to the launch of the widely praised Chick'n Shack sandwich and nine new locations around the world.