Shake Shack forecast quarterly revenue below estimates, as the Omicron variant led to labor shortages and forced the burger chain to close restaurants earlier than usual, sending its shares down 5% in extended trading.
Benefits from easing Covid-19 Delta wave were short-lived for Shake Shack as the Omicron wave that soon followed dissuaded customers from venturing out and set back the recovery of urban-centric restaurants.
Shake Shack said on Thursday it expects total revenue of $196 million to $201.4 million for the first quarter, compared with estimates of $210.9 million, according to IBES data from Refinitiv.
Same-store sales so far in February increased 13% from a year earlier. In comparison, the sales grew 20.8% in the fourth quarter ended Dec. 29.
The New York-based chain pre-announced quarterly results ahead of a conference that advisory firm ICR hosted.
