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Shares of Shake Shack  (SHAK) - Get Shake Shack, Inc. Class A Report rose sharply Friday after the fast food chain cut its third quarter losses by more than half on a 48.6% jump in revenue.

Shake Shack narrowed its third-quarter loss to $2.17 million, or 6 cents a share, from $5.5 million, or 15 cents a share, in the year-ago quarter. The results were in line with Wall Street expectations. 

Revenue rose 48.6% to $193.89 million from $130.4 million in the same period a year ago, missing the low end of the company's own revenue target by a whisker.

Analysts surveyed by FactSet had forecast a loss of 6 cents a share on revenue of $197.5 million, based on the company’s forecast of revenue between $194 million to $200 million.

Shares of the New York restaurant at last check were up 24.23% at $96.35.

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"We saw benefits to our urban Shacks as more of our guests returned to offices, events, commuting and tourism-based locations," CEO Randy Garutti said in a statement. 

"Sales strength aside, we are not immune to the margin pressures that are still being felt across our industry. Inflation in commodity prices and investments across team members are pressuring our margins," Garutti added.

"Our suburban Shacks continue to recover and, on average, perform above 2019 levels. As of fiscal September, we had retained nearly 80% of our digital channel sales, compared to fiscal January 2021, even as in-Shack sales return." 

Shake Shack missed revenue estimates for the third quarter, and estimates for the fourth quarter also lagged analyst expectations.

During the third quarter of 2021, total digital sales, including orders placed on the Shake Shack app, website and third-party delivery platforms, represented approximately 42% of Shack sales.

Shake Shack estimates revenue of $193.5 million to $200 million for the fourth quarter, while analysts currently expect $202.1 million.