Shares of Habit Restaurants Inc. (NASDAQ:HABT) were heating up on Thursday after the fast-casual burger chain turned in a second-quarter earnings report that was better than expected. As a result, the stock was up 17.5% as of 2:07 p.m. EDT.
The California-based chain's comparable sales improved 1.2% in the quarter, and overall revenue jumped 23.4% to $102.9 million, as the company continued its aggressive expansion. That figure topped estimates of $99.7 million. On the bottom line, adjusted earnings per share improved from $0.06 to $0.08, which also beat expectations at $0.03.
CEO Russ Bendel said: "We are pleased with our second-quarter results, which included a return to positive same-store sales growth. We believe our results reflect progress on our key initiatives laid out earlier this year around convenience, quality, and innovation."
Habit seemed to benefit from a low bar. Expectations have fallen considerably for the once-promising growth stock, as the company has struggled to deliver comps growth and meaningful profits since its 2014 IPO.
Looking ahead, Habit lifted its comps guidance for the year from flat to a range of 0.5% to 1%. And it hiked its revenue forecast from the range of $389 million to $393 million, to a range of $393 million to $396 million, ahead of estimates at $392.6 million. Considering that its results beat analyst forecasts and the company raised its guidance, it's clear why the stock jumped today. But Habit still has a lot of work to do to deliver over the long term.