Shake Shack shares slumped after the burger chain reported a deeper-than-expected quarterly loss in its first report as a publicly traded company Wednesday.
The New York company posted a loss of $1.4 million, or 5 cents per share. Analysts expected a loss of 2 cents per share, according to FactSet.
Continue Reading Below
Revenue came to $34.8 million, beating Wall Street's prediction of $33.1 million.
Shake Shack Inc.'s January initial public offering priced above expectations, raising $105 million and more than doubling in the first day of trading, as investors bet on the appeal of its burgers, milkshakes and crinkle-cut fries.
The company had grown to 63 locations in 2014, with 31 stores in the U.S. and operated by the company. Shake Shack plans to open at least 10 U.S. company-operated stores every year.
CEO Ray Garutti said Wednesday in a statement that the cash raised in the IPO will "support our robust expansion plans."
For all of 2014, Shake Shack reported a profit of $2.1 million, or 7 cents per share, on $118.5 million in revenue. Sales at stores open at least a year, an important measure of retailer health, rose 4.1 percent.
The company said it expects $159 million to $163 million in revenue in 2015, and said locations at restaurants open at least a year will grow in the low single digits.
Analysts expect revenue of $160.5 million.
The stock dropped $2.88, or 6.1 percent, to $44.02 in aftermarket trading. They closed Wednesday at $46.90.