Shake Shack (NYSE: SHAK) reported Q1 EPS of $0.10, $0.02 better than the analyst estimate of $0.08. Revenue for the quarter came in at $76.7 million versus the consensus estimate of $74.72 million.

• Total revenue increased 41.7% to $76.7 million.
• Shack sales increased 42.2% to $74.2 million.
• Same-Shack sales decreased 2.5%.
• Operating income increased 19.4% to $5.6 million.
• Shack-level operating profit*, a non-GAAP measure, increased 26.9% to $18.7 million, or 25.2% of Shack sales.
• Adjusted EBITDA*, a non-GAAP measure, increased 28.9% to $12.2 million.
• Net income attributable to Shake Shack Inc. was $2.3 million, or $0.09 per diluted share.
• Adjusted pro forma net income*, a non-GAAP measure, increased 30.9% to $3.7 million, or $0.10 per fully exchanged and diluted share.
• Thirteen net system-wide Shack openings, including seven domestic company-operated Shacks and six net licensed Shacks.

Randy Garutti, Chief Executive Officer of Shake Shack, stated, “We're proud of our nearly 42% total revenue growth and 29% Adjusted EBITDA growth in the first quarter, adding 13 new system-wide Shack openings. New company-operated Shack growth represented approximately $24 million of increased revenue this quarter, offset by a decrease in same-Shack sales. We are clearly dissatisfied with our comp result in Q1, but as a reminder our small comp base is made up of only 32 Shacks, the majority of which exist in the Northeast region which was most affected by cold weather and the holiday shift in March. Looking into the remainder of the year, we\'re increasing our development schedule and overall revenueexpectations, despite the relatively small impact the comp base has on the overall Shack story. We remain committed to executing our strategy of growing in premier locations, investing in our teams and delivering a great guest experience. We are extremely pleased with the early results of the Shack App and this is a key component of our long-term strategy to meet our guests whenever and wherever they want their Shack."

GUIDANCE:

• Shake Shack sees Q2 2017 revenue of $351-355 million, versus the consensus of $356.13 million.
• Same-Shack sales growth to be flat to prior year (vs. 2% to 3%), which includes approximately 1.5% to 2% of menu price increases taken at the end of December.
• Increased development schedule and sales expectation for the class of 2017 to be between 23 and 24 new domestic company-operated Shacks (vs. 22 and 23), with average annual sales volumes of at least $3.3 million (vs. $3.2 million) and Shack-level operating profit margins of at least 21%.
• Increase to 12, net new licensed Shacks to be opened in fiscal 2017 (vs. 11, net).
• Shack-level operating profit margin between 26.5% and 27.5%.
• General and administrative expenses between $38 million and $40 million.
• Depreciation expense of approximately $22 million.
• Interest expense between $1.6 million and $2.0 million.
• Adjusted pro forma effective tax rate between 40% and 41% (excluding the impact from the adoption of ASU 2016-09).

For earnings history and earnings-related data on Shake Shack (SHAK) click here.