Shares of restaurant chain operator Shake Shack Inc. (SHAK - Get Report) slipped 7.2% on Friday to $50.86 after the New York-based company reported third-quarter same-store sales that were softer than expected.
Same-store sales decreased 0.7% for the third quarter of 2018 compared with a 1.6% decline a year ago. Analysts had expected third-quarter same-store sales to rise 0.9%.
Total revenue, which includes Shack sales and licensing revenue, increased 26.5% to $119.6 million.
The company reported quarterly earnings of 21 cents a share, beating the Zacks estimate of 13 cents, and topping the year-ago figure of 17 cents.
In a conference call with analysts, CEO Randy Garutti said "we continue to build quality Shake Shack's in great sites, with community and experience at the heart of their design and location, and that will drive our brand for decades to come."
Also pressuring shares was Wedbush Securities Inc.'s cut of Shake Shack's stock's price target to $56 from $62.