SHAKE SHACK INC. 
(Reuters) - Hamburger chain Shake Shack Inc (>> Shake Shack Inc), known for its indulgent hormone- and antibiotic-free burgers, rich shakes and crinkle-cut french fries, on Monday reported better-than-expected quarterly profit and sales, sending its shares up 8 percent in after-hours trading.
The New York-based company founded by celebrity chef Danny Meyer's Union Square Hospitality Group, said sales at established restaurants soared 12.9 percent in the second quarter, far exceeding analysts' call for a rise of 8.6 percent, according to research firm Consensus Metrix.
For the second quarter, Shake Shack's same restaurant sales included 16 domestic company-operated units open for 24 months or longer. The company, which has 37 company-operated U.S. shops, attributed the results to menu price increases and strong results from restaurants in Las Vegas and Chicago.
It now plans to open at least 12 domestic company-operated Shake Shacks a year starting in 2016, up from a previous target of 10 per year. Shake Shack's ability to expand quickly is key to justifying its lofty stock valuation.
Critics worry that the chain's explosive same-restaurant sales growth, which is a gauge of performance for eateries, will fade as it expands beyond dense urban areas such as New York City.
Shake Shack and popular burrito chain Chipotle Mexican Grill Inc (>> Chipotle Mexican Grill, Inc.) are in the vanguard of restaurants that have carved out a niche among consumers seeking less-processed food that is either organic or raised without chemicals and antibiotics.
Such companies enjoy a so-called "health halo" that diners are willing to pay more for, even though their meals can come with eye-popping calorie counts and significant amounts of saturated fat and sodium.
Shake Shack's second-quarter net income was $1.1 million, or 8 cents per share. Excluding items, it earned 9 cents per share, on total revenue of $48.5 million.
Analysts, on average, expected earnings of 3 cents per share and revenue of $42.8 million.
The company, which has just 71 restaurants around the world, raised other key forecasts.
Shake Shack increased its 2015 revenue forecast to a range of $171 million to $174 million from $161 million to $165 million previously. And, it now expects "same-Shack sales" growth in the mid- to high-single digit percentages versus its prior call for growth in the low- to mid-single digits.
Shares in the company, which went public on Jan. 30 with an IPO offering price of $21, were trading at $76.30 in extended trading on Monday.
(Additional reporting by Noel Randewich in San Francisco; Editing by Alan Crosby and Meredith Mazzilli)
By Lisa Baertlein
