Shake Shack Inc (NYSE:SHAK) is trading lower Friday morning after the company announced its fourth-quarter financial results and issued guidance below estimates.
Shake Shack said quarterly revenue increased 29% year-over-year to $203.3 million, which beat the $202.67 million estimate. The company reported an adjusted earnings loss of 11 cents per share, which beat the estimate for a loss of 17 cents per share.
"We are pleased to report a strong sales comeback in the fourth quarter with record full year system-wide sales results and same-Shack sales up 2.2% versus 2019. However, our sales were impacted by the sharp increase in Omicron cases in fiscal January, causing a decline in traffic, lost hours and Shack closures," said Randy Garutti, CEO of Shake Shack.
"While a return to pre-COVID movement patterns remains uncertain, we are pleased to see improvement through fiscal February, with same-Shack sales up approximately 13% month to date."
Shake Shack expects first-quarter revenue to be between $196 million and $201.4 million versus the estimate of $210.9 million.
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SHAK Price Action: Shake Shack has traded as low as $58.19 and as high as $130 over a 52-week period.
The stock was down 5.1% at $71.34 at time of publication.
Photo: Jonathan Lin from Flickr.
