=Shake Shack (SHAK) reported earnings on Thur 1 Nov 2018 (a/h)

Shake Shack beats by $0.08, beats on revs; guides FY18 revs below consensus

Reports Q3 (Sep) earnings of $0.21 per share, excluding non-recurring items, $0.08 better thanthe S&P Capital IQ Consensus of $0.13; revenues rose 26.5% year/year to $119.65 mln vs the $116.81 mln S&P Capital IQ Consensus. Same-Shack sales decreased 0.7% vs +1% estimate

• Shack-level operating profit*, a non-GAAP measure, increased 20.7% to $29.9 million, or 25.8% of Shack sales.
• Total revenue, which includes Shack sales and licensing revenue, increased 26.5% to $119.6 million in the third quarter of 2018, from $94.6 million in the third quarter of 2017. Shack sales for the third quarter of 2018 were $115.9 million compared to $91.1 million in the same quarter last year, an increase of $24.8 million, or 27.2%, due primarily to the opening of 28 new domestic company-operated Shacks.

Co issues downside guidancefor FY18, sees FY18 revs of $450-452 mln vs. $452.16 mln S&P Capital IQ Consensus.

• reaffirms expectations for Same-Shack sales of 0% to 1.0% year over year.
• Between 33 and 34 new domestic company-operated Shacks to be opened in fiscal 2018 (vs. 32 to 35).
• Between 14 and 16 net new licensed Shacks to be opened in fiscal 2018 (vs. 16 to 18, net).

For the fiscal year ending December 25, 2019, the Company is providing the following outlook:

• Between 36 and 40 new domestic company-operated Shacks to be opened in fiscal 2019.
• Between 16 and 18, net new licensed Shacks to be opened in fiscal 2019.