Shake Shack restaurant sales disappoint, stock drops

Shake Shack stock slid 8.5 percent to $37.40 in extended trading after the chain said closely watched same-restaurant sales were up 4.5 percent during the second quarter. That marks a slowdown from the 9.9 percent gain the chain posted in the prior quarter and trails the 5.4 percent increase analysts had expected, according to Consensus Metrix.

Shake Shack restaurants, particularly in Manhattan, often have long lines.

Sales growth also may have slowed after the company opened more restaurants in NY, which could have taken customers away from its established locations, he said.

Analysts Rating updates about two Stocks: Shake Shack, Inc.

The shares dropped as low as $36.80 in NY on Wednesday in after-hours trading.

During the most recent trading day, the stock’s price shifted up +38.60% from its 52-week low and -37.94% lower from its 52-week high. They issued an “underperform” rating and a $30.00 price target on the stock.

Shake Shack reported a profit of 14 cents a share, beating forecasts for 13 cents, on sales of $66.5 million, topping estimates for $63.1 million.

“That’s going to be our biggest challenge”, Chief Financial Officer Jeff Uttz said during an investor conference in June. This would be nearly 30% higher revenue than what was reported for the same quarter of the prior year.

The Country Caller takes a sneak-peak at Shake Shack’s financial position and also shares the forecasts of Wall Street analysts. It previously expected between $245 million and $249 million in revenue.

Before it’s here, it’s on the Bloomberg Terminal.