Shake Shack (NYSE:SHAK) Inc forecast revenue for its first quarter after-hours on Thursday, which fell short of Wall Street expectations.
The burger chain company forecasts revenue for the three months to come in at between US$196 million and US$201.4 million, compared with an average analyst estimate of US$210.9 million, as the coronavirus (COVID-19) kept customers away, infected staff and hampered the group's recovery
Reportedly, rising paper and food expenses and labor costs also put pressure on margins.
To counter this, the firm, in keeping with other big chains, said it will put prices up in March this year and increase its third-party delivery menu prices.
It comes after the company in October last year already raised prices by 3% to 3.5%.
But Shake Shack did highlight a recent improvement in improved sales, with monthly comparable sales to February 15, 2022, jumping 13% compared to 2% last month.
Shares fell over 17% to US$63 in pre-market New York trading on Friday.