Shake Shack Digests Loss in Earnings Debut
The company announced its first earnings report as a public company.
— -- A "Shack"-attack is hitting the country since Shake Shack went public in January as the food chain aims to triple its presence in the U.S.
After a successful IPO, Shake Shack CEO Randy Garutti said today that he dreams of having 450 locations in the U.S. alone, though Shake Shack stock (NYSE: SHAK) fell nearly 6 percent in after-hours trading.
The company says its on track in its goal of opening at least 10 new domestic company-operated locations each year -- and to double its U.S. store-count in three years.
Garutti hopes the "premium ingredients" in its menu items, like its famous cheese ShackBurger, vegetarian 'Shroom Burger, and its "Shake of the Week," will define the "fine casual" category.
“As a result of our successful IPO, we have the financial flexibility to support our robust expansion plans," Garutti said in a statement.
Though the company reported a net loss of $1.4 million today, its revenue was still higher than expected. Revenue increased 51.5 percent to $34.8 million and sales increased 51.6 percent to $33.1 million during its fourth quarter that ended Dec. 31.
"Long-term, we see the potential for at least 450 domestic company-operated Shacks. Our unique and versatile real estate model is built for growth here in the United States and abroad," Garutti said in his statement.
There are 66 Shake Shacks globally, including the United Kingdom, Turkey, Russia and the Middle East. That number includes 34 domestic company-operated and five domestic licensed Shacks in 11 states and Washington, D.C.
Earlier this month, Shake Shack opened two of its newest locations in the Boston area, including the pedestrian-friendly Newbury Street, which brings the total in Massachusetts to four.