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3 Biggest Takeaways From Shake Shack's Blowout Quarter


Shake Shack (SHAK) served up another juicy quarter for investors to chew on.

The better burger chain, known for its gourmet hamburgers and thick frozen custards, reported third-quarter earnings of 12 cents a share, beating analysts' expectations of 7 cents a share. Same-restaurant sales surged 17.1%, trouncing the already impressive 12.9% gain delivered in the second quarter.

According to Shake Shack, strong sales were due to robust traffic growth, increased menu prices, people gravitating toward new items such as a burger with bacon and caramelized onions, and strong performance from locations opened in the latter half of last year in Las Vegas and Chicago.

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"The third quarter marked another strong quarter in terms of same-Shack (restaurant) sales growth, as we continued to execute on our strategic plan and drive engagement with our guests," said Shake Shack CEO Randy Garutti in a statement.

Shares of Shake Shack surged about 7% in after-hours trading on Thursday, and were up a similar amount in premarket trading on Friday.

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TheStreet takes a look at the top three takeaways for investors from Shake Shack's blowout quarter.

Insiders Aren't Lacking Confidence in Shake Shack's Outlook

Wall Street has cooled on Shake Shack's stock lately despite its strong year of sales. Shares of Shake Shack have fallen...