Shake Shack's (SHAK) latest earnings release had a host of savory nuggets for investors to digest.
Shares of the better burger joint surged as much as 6% in after-hours trading on Wednesday as the company reported third sales rose 40% from the prior year to $74.6 million. Wall Street expected sales of $69.3 million. Earnings came in at 15 cents a share, beating analyst forecasts by a penny.
Here is what may have Wall Street excited about the earnings.
1. Same-Stores Beat Estimates
In the face of lackluster third quarter sales from fast food joints such as McDonald's (MCD) due to more people eating at home, Shake Shack managed to circumvent what has been dubbed the U.S. restaurant recession. The company's same-store sales rose 2.9%, beating estimates for a 1.9% increase.
2. Shake Shack Opening Restaurants Even Faster
The company is targeting 21 to 22 new restaurant openings in the U.S. next year, a faster pace than the 19 expected to open this year. About 10 international openings are expected for next year, consistent to the number unveiled in 2016.
3. Reiterated Full Year Same-Store Sales Outlook
Shake Shack reaffirmed that it sees full-year same-store sales rising 4% to 5% this year. Considering the broader restaurant sales slowdown, maintaining its outlook suggests sales have gotten off to a good start in the fourth quarter.