03:35 PM EDT, 07/31/2025 (MT Newswires) -- Shake Shack ( SHAK ) shares tumbled intraday Thursday after the burger chain issued a downbeat third-quarter revenue outlook following a same-store sales miss in the second quarter.

For the ongoing quarter, the company expects revenue of $358 million to $364 million, Chief Financial Officer Katherine Fogertey said on an earnings conference call, according to a FactSet transcript. That's below the FactSet-polled consensus of $365.1 million. The company projects same-store sales to grow by low single digits year on year, while Wall Street is looking for a 2.6% increase.

For the quarter ended June 25, same-store sales grew 1.8%, lagging the Street's views for a 2.2% gain. The company faced "a particularly challenging environment" in the first quarter and April, Chief Executive Robert Lynch said on the call. "There are still lingering headwinds facing the industry."

Shake Shack ( SHAK ) shares were down nearly 14% in Thursday late-afternoon trade. The stock has lost 6% in value so far this year.

Second-quarter adjusted earnings rose to $0.44 a share from $0.27 a year earlier, exceeding the Street's model for $0.38. Revenue grew 13% to $356.5 million, ahead of analysts' view of $354.1 million.

For 2025, the company expects revenue between $1.4 billion and $1.5 billion, Fogertey told analysts. "We're currently tracking to approximately the midpoint of this range." Shake Shack ( SHAK ) projects same-store sales to increase by low-single digits, Fogertey added. The Street is looking for 2025 sales of $1.45 billion and comparable sales growth of 1.8%.

"We remain confident in the trajectory of the business, and in achieving our three-year target of growing revenue by at least low teens percent year over year," Fogertey said.

The latest pullback in the company's stock creates a "strong" buying opportunity, Truist Securities said. Shake Shack's ( SHAK ) same-store sales growth in July seems to have "a much smaller boost" from the recently launched Dubai Chocolate Pistachio Shake than estimated amid low awareness, the brokerage wrote in a note to clients Thursday.

"The weaker 'Dubai Shake' boost suggests that underlying (same-store sales) momentum is solid, with significant drivers ahead," Truist said. The firm increased its price target on the stock to $162 from $160, while keeping its buy rating intact.

Price: 122.10, Change: -18.81, Percent Change: -13.35