Shake Shack shares rallied at the opening of trading in New York this morning after an overnight slump in reaction to an unexpected sales decline.
Quarterly results for Q1 2017 revealed like for like sales across the US-listed group’s estate decreased by 2.5%, which chief executive Randy Garutti said were “disappointing”.
Total revenue increased 41.7% to $76.7 million, sales increased 42.2% to $74.2 million and adjusted EBITDA increased 28.9% to $12.2 million.
The results cover the period Shake Shack opened licensed stores in Canary Wharf and Victoria Nova, part of 13 openings roughly split between American and international.
Garutti said: “We are clearly dissatisfied with our comp result in Q1, but as a reminder our small comp base is made up of only 32 Shacks, the majority of which exist in the Northeast region which was most affected by cold weather and the holiday shift in March.
“Looking into the remainder of the year, we’re increasing our development schedule and overall revenue expectations, despite the relatively small impact the comp base has on the overall Shack story.
“We remain committed to executing our strategy of growing in premier locations, investing in our teams and delivering a great guest experience. We are extremely pleased with the early results of the Shack App and this is a key component of our long-term strategy to meet our guests whenever and wherever they want their Shack.”
Shake Shack has seven stores in the UK - six in London and one in Cardiff.
Garutti has previously said Brexit had tempered Shake Shack’s near term expectations for the UK.