Retail

Shake Shack Shares Soar On The Wings Of Mobile

Shake Shack

Shake Shack shares rose as much as 9.7 percent in late trading after the burger chain reported sales that beat estimates.

Bloomberg reported that same-store sales went up 3.6 percent last quarter, beating analysts’ projected 0.8 percent increase. In addition, the company raised its forecast for revenue and same-store sales.

Shake Shack’s revamped mobile app, as well as the addition of chicken offerings to the menu and warm weather in key areas, helped boost customer traffic 1.6 percent.

The company has been working towards improving its digital technology and delivery, and recently hired its first chief information officer. It has also been expanding across the country, as well as making strides abroad, with as many as 18 new international locations planned for this year in markets including China and Mexico.

One move Shack Shake won’t be making: going cashless. Last year after it opened a location in New York City that didn’t accept cash, the company decided not to continue with a plan to have fully cashless restaurants.

“Some of the things we’ve clearly seen is that our guests do often want to pay with cash,” CEO Randy Garutti said on the company’s earnings conference call at the time. “In the first rollout at Astor Place, we did not accept cash at all, and there are people who have told us very clearly ‘we want to pay with cash.’”

As a result, the company decided to add cashiers to cashless stores.

The news comes months after Shake Shack had customers order through digital kiosks or their smartphones at an Astor Place location. The cashless kiosks were to be manned by “hospitality champs” — employees who would make sure customers’ time in the restaurant was as pleasant and problem-free as possible. Orders were to go directly to the kitchen, which also had a reset to “eliminate friction time,” Garutti explained.

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