Shake Shack served up a good chicken sandwich and is now savoring the benefits.
Sales of Shake Shack jumped significantly over the latest quarter - bigger than what it had previously expected.
Randy Garutti, the burger chain's CEO, acknowledged in a conference that their Q1 sales skyrocketed after the national debut of the Chick'n Shack sandwich they launched last January.
Garutti said the company made the sandwich as a limited-time offering, or it would only be served on a quarterly basis to allow the burger chain to come up with innovative menu offerings. If it proves to be a game-changer, the chicken sandwich may become a permanent item in the menu.
With the success garnered by the $6.29 Chick'n Shack, the company is looking to launch another sandwich this spring, called the Bacon Cheddar Shack, which will be sold for $6.89.
In a press release, Shake Shack reported that it is experiencing a robust performance in all its locations, with total revenue jumping to $54.2 million or 43 percent. Its sales significantly increased by 9.9 percent. The company said the strong performance can be attributed to the increase in new restaurants, higher prices and increased traffic.
It is also worth noting that the New York-based company's financial targets grew to as much as $249 million from a previous of $242 million revenue.
Shake Shack is also expecting to expand its business by putting up 16 new company-operated branches this year.
"With the extraordinary results in Q1, we are off to a strong start to the year," said Garutti.
Shares of the company grew in early 2015 after Shake Shack filed for an initial public offering at the end of 2014. After only a few months, stock prices peaked at $93. The company now trades at $36. At present, the burger chain is taking a slow and steady stance on its growth.
Shake Shack was initially just a hot dog stand in Madison Square Park in New York and has since grown to include 84 locations in just over a decade. If growth continues this year, the company is looking at having 100 locations globally.
The success of the burger chain has been featured in the documentary The Restaurateur.
Photo: Mike Mozart | Flickr
