Business Corpus: Shake Shack Dives On Weak Q3 Same-Store Sales TrendsShake Shack earnings are due after the close, and analysts see the first drop in adjusted per-share profit since the better-burger chain's 2015 IPO. The post Shake Shack Dives On Weak Q3 Same-Store Sales Trends appeared first on Investor's Business Daily.

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Shake Shack (SHAK) stock got slammed after hours after the better-burger chain reported an unexpected drop in Q3 same-store sales.

The company also lowered expectations for the number of stores it expects to open this year — a big focal point for Wall Street.

Shake Shack Earnings

Estimates: A 23.5% drop in Shake Shack earnings per share to 13 cents, according to Zacks Investment Research. Revenue was expected to jump 23% to $117 million. Same-store sales were expected to rise 0.9%, according to Consensus Metrix.

Results: Revenue rose 26.5% to $119.6 million. Same-store sales fell 0.7%. EPS came in at 17 cents.

Outlook: Shake Shack said it expected between 33 and 34 domestic company-run stores to open this year, compared to earlier expectations for 32 to 35. The company expects 14-16 net new licensed locations to open in 2018, compared to 16-18 earlier.

Still, Shake Shack raised its full-year revenue outlook to a range of $450 million and $452 million. That was up from $446 million to $450 million. But it was still below analysts' estimates for $452 million.

The company stuck with its outlook for same-store sales ranging from flat to up 1%.

For next year, Shake Shack said it expected to open 36-40 domestic company-run stores and 16-18 net new licensed ones.

Shake Shack Stock

Shake Shack stock skidded 6% to 51.81 in the stock market today. The stock was seeking support at its 200-day line. Shares were in a consolidation with a 70.22 entry.

Wingstop (WING) was unchanged after hours. The chicken-wing chain reported strong earnings on Monday.

McDonald's (MCD), which broke out after turning out estimate-beating earnings last week, was also unchanged late Thursday%. Chipotle Mexican Grill (CMG) was inactive too. The fast-casual chain also reported earnings last week. Chipotle is back above its 50-day line, after dipping below it in September.

Shake Shack Earnings: Watch Expansion, Delivery Plans

Shake Shack's restaurants serve beer and wine along with a higher-end take on standard burger-joint fare. The chain's ability to open more of them has been key component in pushing revenue higher.

But Shake Shack stock crashed in August after it indicated that many of its planned store openings would have to be crammed into Q4 and December. Management cited permit delays and construction-related issues in building new locations.

In a research note last week, William Blair analysts also said they would be watching for any updates on Shake Shack's test of delivery — a service many other restaurants have added as they try to meet diners at their smartphones. Higher labor costs could weigh on Shake Shack's margins, they said.

Similarly, McDonald's cited downtime from restaurant remodeling when it reported results last month. The company is revamping its restaurants to have more features like self-ordering kiosks, mobile-ordering and curbside pickup.

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The post Shake Shack Dives On Weak Q3 Same-Store Sales Trends appeared first on Investor's Business Daily.