Shake Shack had a very good start to the year, and that momentum carried into the spring and shows no sign of slowing. The company now expects 2015 to be an even better year than it originally expected.
In the three months ending July 1, Shake Shack opened five new restaurants and increased revenue to to $48.5 million, up by 74.7% over the same period last year.
Much of that growth was due to all the new Shacks it opened in the last year, but it's also seeing a brisk growth in business at its existing outlets: sales at restaurants open for 24 months or longer rose by 12.9%, following an 11.7% jump during the first quarter.
Investors liked the results: shares rose as much as 13% in after-hours trading. Shake Shack is currently valued at $2.56 billion.
The company's revenue numbers are still benefiting from a price increase and the return of its popular crinkle cut fries. Average weekly sales at domestic company-operated restaurants were $102,000 in the second quarter, up 7.4%.
Moving forward, the company launched a number of new products that could continue to boost results, like the recently introduced Roadside Shack burger, which is a cheeseburger topped with caramelized onions simmered in beer and bacon.
The ChickenShack, a fried chicken sandwich is available only at the chain's three Brooklyn restaurants, turned out to be more popular than expected (it sold out after two days and returned a week later). The company plans to track the ChickenShack's performance, but did not announce plans to launch it in all of its restaurants.
Shake Shack is now on track to expand faster than it had anticipated. It will add a total of 12 new domestic company-operated restaurants in 2015, versus the 10 it had planned. As for financials, Shake Shack expects full year same-store sales growth in the mid- to high-single digit percent rage (compared to low- to mid-single digits previously expected) and total revenue of $171 million to $174 million (up from $161 million to $165 million).
Like all restaurant chains, however, Shake Shack faces pressure from rising minimum wages in the U.S. and rising wage expectations. In July, it increased pay in its D.C. stores to $12 an hour.
Shake Shack, which is very gradually expanding its store count, now has 71 restaurants, including 29 international locations.