Investing.com -- Shares in Shake Shack Inc (NYSE:SHAK) soared more than 7% in after-hours trading after the New York-based boutique hamburger restaurant chain posted better than expected quarterly revenues on Wednesday.
Shack sales increased nearly 60% on a year-over-year basis for the quarter to $36 million, while total revenue rose by 56.3% to $37.8 million. Analysts expected the 11-year old company to post revenues of $34 million for the quarter.
“We are pleased to have continued our strong momentum through the first quarter. During the quarter we opened three new Shacks as we entered Baltimore, Maryland in the Inner Harbor, and deepened our roots in the Boston market with Shacks opening on Newbury Street in the heart of the historic Back Bay neighborhood and in Dedham, MA at Legacy Place," Shake Shack CEO Randy Garutti said in a statement. "Our strong track record of opening successful Shacks in both the United States and internationally continues to demonstrate the global appeal of Shake Shack and validates our belief in our significant whitespace opportunity."
Shares in Shake Shack surged more than 5.05 points or 7.39% to 73.41. Shares in Shake Shack have nearly tripled since its IPO was priced at $21 on January 29 and up by more than $25 since it began trading at $47 a day later. The restaurant posted a net loss of 12.7 million due to costs related to the IPO.
Shake Shack plans to expand its global imprint into Japan, when it is scheduled to open a restaurant in Tokyo next year. At the time of its public filing, Shake Shack already had restaurants in 27 international locations, including London, Moscow, Istanbul, Dubai and Kuwait City. In addition, Shake Shack had 36 restaurants in the U.S. when it went public at the start of the year.
"We remain on track to execute our plan to open at least ten new domestic company-operated Shacks and five new international licensed Shacks in 2015 and have an exciting pipeline building for 2016 and beyond, including our recently announced expansion to California and Japan," Garutti said. "As we expand globally, we are committed to connecting to our communities, advancing our culture as we grow, further capitalizing on the shift we see in consumer eating preferences and continuing to deliver on our mission to ‘Stand for Something Good’.”