Shake Shack’s stock jumps after sales set to beat expectations

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Shares of Shake Shack Inc. jumped 2.2% toward a 15-month high in premarket trading Tuesday, after the burger chain provided and upbeat fourth-quarter sales outlook. On a preliminary basis, the company said total revenue for the quarter Dec. 30 rose 4.0% from a year ago to $157.5 million, above the FactSet consensus of $153.2 million. Same-Shack sales for the quarter fell 17.4%, but that beat the FactSet consensus of a 19.5% drop. The company said at its suburban locations, same-Shack sales were about flat, as expanded digital capabilities helped offset challenges from the COVID-19 pandemic. The company said it’s targeting an acceleration of new Shack restaurant development, and plans to open 35 to 40 company-operated restaurants this year and 45 to 50 restaurants next year. The stock, which is on track to open a the highest price seen during regular-session hours since October 2019, has rallied 27.5% over the past three months through Monday, while the S&P 500 has gained 7.5%.
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