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Money Talk

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Shake Shack Profit Rises 32% as Traffic Extends Growth Run

Shake Shack reported a fifth consecutive quarter of positive traffic, with third-quarter profit rising to $16.5 million and revenue climbing 15.2% to $423.3 million. Adjusted earnings topped analysts’ expectations, while revenue came in below the Wall Street forecast.

Shake Shack Profit Rises 32% as Traffic Extends Growth Run

Profit was 39 cents a share, compared with $12.5 million, or 30 cents a share, in the same period last year. Excluding one-time items, earnings reached 40 cents a share, ahead of the 34 cents expected by analysts surveyed by FactSet.

Same-store sales increased 2.5%, exceeding analysts’ forecast of 1.4%, and traffic grew 0.8%. Systemwide sales rose 12.8% to $644.8 million.

“Our improvements in restaurant operations continue to elevate the guest experience while delivering strong margins,” the company said in a shareholder letter. Shake Shack added that targeted media and digital investments continue to strengthen guest engagement and drive traffic growth.

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