(C) Reuters. FILE PHOTO: A Shake Shack Inc. burger chain restaurant employee works during the outbreak of the coronavirus disease (COVID-19) in New York City
(Reuters) – Shake Shack Inc (N:SHAK) posted a bigger-than-expected quarterly loss on Thursday, as the burger chain temporarily closed some restaurants and limited working hours due to COVID-19 lockdowns and civil unrest that gripped several U.S. cities.
Shares of New York-based company were down 5% in extended trading.
Restaurants have been forced to bank heavily on sales from online orders and drive-thrus and also identify new ways to serve customers, as they battle constantly changing dynamics and consumer behaviors brought on by the health crisis.
Industry bellwether McDonald’s (NYSE:MCD) on Tuesday said that drive-thru accounted for nearly 90% of its quarterly sales, while urban-centric Shake Shack has only started the design process for its first ever drive-thru location, planned to open in 2021.
The restaurant chain said same-store sales fell about 49% in the quarter ended June 24, as traffic more than halved. Total quarterly revenue fell to $91.8 million from $152.7 million, below average analysts’ estimate of $93 million.
Digital sales accounted for three-fourths of the company’s sales.
Excluding one-time items, Shake Shack posted a loss of 45 cents per share, compared with market estimates of 37 cents, according to IBES data from Refinitiv.
It also said same-store sales decreased 39% between June 24 and July 22, with rural restaurants outperforming the urban ones.
Burger chain Shake Shack posts bigger-than-expected quarterly loss
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