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Shake Shack’s comp sales jump 12.9%

Same-store sales at Shake Shack rose 12.9 percent year over year during the second quarter, the fast-casual burger company announced Wednesday, beating previous estimates by more than 4 percentage points.

Net income for the company fell 40 percent during the quarter ended July 1, to $1.1 million, on revenues of $48.5 million—a 74.7 percent increase from the same period last year.

Though concerns were raised early in Q2 that the post-renovation reopening of the chain’s flagship Madison Square Park location would cannibalize sales at other locations that help comprise the comp base, the feared effect didn’t materialize much.

“Our team continues to execute on our plan, and we have delivered another strong quarter of outstanding operational results,” Shake Shack CEO Randy Garutti said.

Buoyed by its Q2 performance, the company has raised its guidance for the remainder of the fiscal year, anticipating comp sales in the mid- to high-single digits, up from the low- to mid-single digit increase it had previously expected.

The company has also added two new restaurants to its development schedule, with the intention of adding 12 new domestic locations by the end of the fiscal year. During Q2, the concept added its first location in Austin, Texas, and additional units in Chicago and New Jersey.

“Looking ahead to 2016 and beyond, we now expect to open at least 12 domestic company-operated Shacks annually,” Garutti said.

Even Shake Shack’s menu saw growth during Q2. Earlier this summer, the concept known for its streamlined menu debuted two new offerings—its first-ever chicken sandwich, The ChickenShack, and an LTO burger inspired by the roadside burger stands of yesteryear.
 

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