Shake Shack sales crush expectations

The company raised its forecast for revenue to be as much as $190 million this year, compared with a previous estimate of as much as $174 million.

Its revenue climbed 67.4 percent year-over-year to $53.3 million.

Shake Shack reported earnings after the closing bell on Thursday, with sales better than expected. Its new same-restaurant sales forecast calls for growth of 11 to 12 percent.

On a per-share basis, the Dallas-based company said it had profit of $1.04. Since buying a call options allows one the right to purchase a stock at a set price and given time, these are bullish bets that Shake Shack will rise above $51.65 by Friday.

Shares of the company, which went public on January 30 with an IPO offering price of $21, flirted with $100 before early investors were given the chance to cash out. Net income was up from the year-ago period. Eight global licensed Shacks are also forecast to be opened. “We opened four domestic company-operated Shacks during the quarter and, as previously announced, we will be officially opening our first Shack in Tokyo in the remarkable Meiji-Jingu Gaien park this November, ahead of schedule”. Six analysts surveyed by Zacks expected $47.1 million.

However, critics have reservations that the restaurant chain’s meteoric same-store sales rise – a measure of restaurant performance – will die down as it extends outside dense urban areas.

Shake Shack, a restaurant known for its indulgent side dishes and antibiotic-free hamburgers and the restaurant founded by celebrity restaurateur Danny Meyer, said on Thursday that shares in extended trade shot up to 7 percent.