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Shake Shack forecasts slim sales as Omicron surge hurts

Signage for Shake Shack Inc. is displayed on a glass door at the company’s restaurant in Shanghai, China.
Qilai Shen | Bloomberg | Getty Images

Shake Shack forecast quarterly revenue below estimates, as the Omicron variant led to labor shortages and forced the burger chain to close restaurants earlier than usual, sending its shares down 5% in extended trading.

Benefits from easing Covid-19 Delta wave were short-lived for Shake Shack as the Omicron wave that soon followed dissuaded customers from venturing out and set back the recovery of urban-centric restaurants.

Shake Shack said on Thursday it expects total revenue of $196 million to $201.4 million for the first quarter, compared with estimates of $210.9 million, according to IBES data from Refinitiv.

Same-store sales so far in February increased 13% from a year earlier. In comparison, the sales grew 20.8% in the fourth quarter ended Dec. 29.

The New York-based chain pre-announced quarterly results ahead of a conference that advisory firm ICR hosted.

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