Aug 2 (Reuters) - Shake Shack Inc on Thursday reaffirmed its full-year revenue forecast, disappointing Wall Street which was expecting the company to raise its guidance on the back of rising popularity of its pricey burgers and milkshakes.
Shares of the company, which have risen 31 percent in the last three months, fell 7 percent to $59.60 in extended trading.
The company maintained its 2018 revenue forecast of between $446 million and $450 million, below analysts’ expectation of $452.3 million.
Sales at Shake Shacks open for at least two years rose 1.1 percent, in line with what analysts had expected, according to Thomson Reuters I/B/E/S.
“Should the results meet or even miss investor expectations, we would expect shares’ reaction to be strongly negative,” Cowen & Co analyst Andrew Charles wrote in a pre-earings note.
Net income attributable to the company rose to $7.6 million, or 26 cents per diluted share, in the second quarter ended June 27 from $4.9 million, or 19 cents per share, a year earlier.
Total revenue rose 27.3 percent to $116.3 million, beating the average analyst estimate of $111 million.
Excluding certain items, the company earned 29 cents per share, beating estimates of 18 cents.
Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur