Shake Shack Inc. (NYSE:SHAK) shares are down during Thursday’s session, trading lower by 28% as the company faces scrutiny following its latest financial results.
Q1 In Detail
The company reported first-quarter sales of $366.737 million (+14.3% year over year), missing the analyst consensus estimate of $371.898 million. Sales included $354 million of Shack sales and $12.7 million of Licensing revenue.
The company reported system-wide sales of $558.3 million for the quarter, up 14.1% year over year, while Same-Shack sales increased 4.6%.
Restaurant-level profit margin expanded to 21.2% from 20.7% a year ago.
Adjusted EBITDA decreased to $36.965 million, compared with $40.745 million a year ago. Adjusted EBITDA margin contracted to 10.1% from 12.7% a year ago.
Shake Shack said it has opened 17 new company-operated Shacks and five new licensed Shacks.
“The strength of our pipeline and the compelling cash -on-cash returns provide the confidence to raise our full-year development guidance to 60-65 new Company-operated Shacks, up from our prior range of 55 to 60,” the company said in a statement.
Shake Shack exited the quarter with cash and equivalents worth $313.65 million. Long-term debt at quarter-end totalled $247.993 million.
The company said it expects food and paper …
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