Shake Shack Shares Slide On Subdued 2017 Revenue Outlook

By Sue Chang Markets MarketWatch Pulse

Shares of Shake Shack Inc. fell in Wednesday's extended session after the casual restaurant chain issued a tepid 2017 revenue outlook. Shake Shack reported its fourth-quarter earnings rose to $5.5 million, or 15 cents a share, from $3 million, or 7 cents a share, a year ago. On an adjusted basis, it would have earned 9 cents a share. Revenue grew 43.5% to $73.3 million while same-store sales climbed 1.6%, slowing sharply from an increase of 11% a year ago. Analysts surveyed by FactSet had forecast earnings of 9 cents a share on revenue of $70.7 million. The burger chain forecast 2017 revenue in a range of $349 million to $353 million, below analysts' average estimate of $354.5 million. It also projected same-store sales of 2% to 3%. Shake Shack shares slid more than 3.7% after hours.

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