FILE - In this April 15, 2015 file photo, a man walks out of the Shake Shack in front of the New York-New York hotel and casino in Las Vegas. Shake Shack on Monday, Aug. 10, 2015 said that price hikes and the return of its crinkle-cut French fries helped lift sales 12.9 percent at established locations during the second quarter, and raised its outlook for the year. (AP Photo/John Locher, File)

FILE - In this April 15, 2015 file photo, a man walks out of the Shake Shack in front of the New York-New York hotel and casino in Las Vegas. Shake Shack on Monday, Aug. 10, 2015 said that price hikes and the return of its crinkle-cut French fries ... helped lift sales 12.9 percent at established locations during the second quarter, and raised its outlook for the year. (AP Photo/John Locher, File) (The Associated Press)

Shake Shack Results Beat Estimates, Raises Forecast

Industries Reuters

Shake Shack, known for its juicy antibiotic-free hamburgers and frozen custard shakes, on Thursday reported results that topped expectations and raised its same-restaurant sales forecast for the year.

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The stock rose as much as 9 percent in after-hours trading, before paring gains to about 5 percent.

"We have continued to execute our growth strategy and drive record results and engagement with our guests while making crucial investments in our team and our Shacks," Chief Executive Randy Garutti said in a news release.

The company, which began as a hotdog stand in New York City's Madison Square Park in 2001, said the recent launch of its Chick'n Shack sandwich at U.S. stores helped same-restaurant sales rise to 9.9 percent. That topped the 5.3 percent consensus estimate of analysts polled by research firm Consensus Metrix.

The New York-based restaurant chain, which went public in January 2015, reported a net profit of $1.5 million, or 7 cents per share, compared to a net loss of $12.7 million, or $1.06 per share, in the year-ago period.

Adjusted earnings were 8 cents per share. Analysts on average had expected 5 cents, according to Thomson Reuters I/B/E/S.

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Total revenue rose 43 percent to $54.2 million.

The burger joint's stock rose as high as $37.49 shortly after the company released its results, before trading at $34.26. It has fallen more than 63 percent from an all-time peak of $92.86 in May 2015.

The stock debuted on the New York Stock Exchange at $21, more than twice the estimate, buoyed by growth-hungry investors hoping the burger chain would replicate the red-hot run of industry darling Chipotle Mexican Grill Inc.

(Reporting by Melissa Fares; Editing by Richard Chang)