Shake Shack (SHAK) - Get Report shares fell Tuesday after the fast-food chain reported that same-store sales plunged 49% in the quarter ended June 24 from a year earlier amid the coronavirus pandemic and civil rights protests that reduced the restaurants’ operating hours.
The drop was “driven by a decline in traffic of 60.1% and an increase in price mix of 11.1%,” Shake Shack said in a statement. “Same-Shack sales improved during the quarter, delivering 64%, 42% and 42% declines for fiscal periods April, May and June, respectively.”
Shake Shack shares recently traded at $52.04, down 2.60%. The stock has jumped 40% over the last three months.
The company opened four new company-operated Shacks in Sacramento, Los Angeles, Charlotte and St. Louis in the latest quarter. Each of them “opened with encouraging levels of sales,” Shake Shack said.
“Amidst our gradual sales recovery, we've started to open new Shacks again and are looking to the significant growth opportunity that we believe lies ahead for Shake Shack,” said the company’s CEO Randy Garutti.
Revenue totaled $91.8 million for the latest quarter.
Domestic company-operated Shacks showed steady sales increases over the last few weeks, with most recent average weekly sales of $58,000, an increase of 18% compared to the week ended April 29, the company said.
Same-store sales for the most recent week ended July 1 fell 39%, the company said.
The slow recovery of New York City from the pandemic has been a problem. For the week ended July 1, New York City same-store sales dropped 58% from a year earlier.