Edit
Operations

Shake Shack sees same-store sales dip

The better-burger chain hopes menu innovation and new store openings will give sales and traffic a boost.
Photograph: Shutterstock

Shake Shack, once the darling of better-burger brands, continues to show signs of struggle in the sector as it reported a same-store sales decline this week.

Comps decreased 0.7% for the quarter ended Sept. 26, while total revenue rose 26.5% and sales increased 27.2%.

Shake Shack stock prices tumbled more than 11% on the news early Friday.

During the quarter, Shake Shack opened seven company-operated stores and two licensed units.

The brand expects to launch its largest number of new stores in history in 2019, with plans to open 36 to 40 units, executives said during a call with analysts Thursday.

The company drew concern from investors following its announcement in August that it was suffering from a logjam in unit expansion, stalling growth until the later part of 2018.

After opening an innovation kitchen and adding a new executive chef, the chain hopes to build excitement—and revenue—around new menu items, executives said. Executives provided few specifics on new menu items, but revealed afternoon snacking, chicken bites and veggie burgers to be areas of interest.

Shake Shack just began testing web-based ordering in 10 stores and is continuing to add self-ordering kiosks to select units.

 

Trending

More from our partners