Shake Shack’s stock sinks after profit beats expectations, but sales miss and the full-year outlook was trimmed

Shares of Shake Shack Inc.
SHAK,
+5.68%
shed 4.7% toward a seven-week low in premarket trading Thursday, after the burger chain beat second-quarter profit expectations but missed on sales and lowered the midpoint of its full-year outlook. The company swung to net income of $6.95 million, or 16 cents a share, from a loss of $1.19 million, or 3 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 18 cents beat the FactSet consensus of 10 cents. Total revenue grew 17.8% to $271.81 million, but was below the FactSet consensus of $274.5 million, as same-store sales growth of 3.0% missed expectations of a 5.0% rise. For 2023, the company revised its total revenue guidance range to $1.07 billion to $1.08 billion from $1.06 billion to $1.11 billion, as the midpoint of guidance fell to $1.075 billion from $1.085 billion. The stock has soared 80.7% year to date through Wednesday, while the S&P 500
SPX,
-0.53%
has advanced 17.6%.