Pedestrians walk past a Shake Shack location in New York.
Scott Mlyn | CNBC
Shares of Shake Shack rose in extended trading on Monday, after the company reported second-quarter earnings that topped Wall Street’s expectations, and raised its revenue forecast for the year.
The stock, which has gained more than 60% so far this year, surged as much as 6% after the bell before backing off its highs. Recently, shares were up nearly 3%. The company has a market value of $2.7 billion.
The burger chain reported net income of $9 million, or 29 cents a share, up from $7.6 million, or 26 cents a share, a year ago.
Excluding items, Shake Shack earned 27 cents a share, topping the 23 cents a share expected by analysts surveyed by Refinitiv.
Revenue rose 31% to $152.7 million from $116.3 million a year ago, outpacing the $149.5 million analysts expected.
Sales at the company’s stores open more than a year rose 3.6%. Analysts had expected same-store sales to rise 2.0%.
“More than halfway through 2019, we are pleased to report continued strong momentum into the second quarter across all areas of the business,” Shake Shack’s CEO Randy said in a press release. “Our digital channels, including delivery, were a key contributor to these results, in conjunction with a benefit from the shift in Easter timing within the second quarter.”
The company also announced Monday morning that it will team up Grubhub to offer delivery. The partnership will be tested in four locations and will roll out over the next several quarters.
Garutti announced the company would be raising their revenue guidance, citing strong sales in the chain’s international stores, including those in Hong Kong and Shanghai. The company now expects revenue of between $585 million and $590 million, up from a prior range of $576 million to $582 million. Analysts expected 2019 sales of $591 million.