Shake Shack trimmed its second-quarter sales outlook as the burger chain battles intense competition and uncertain consumer demand. The company cut comparable same-store sales guidance to 2.5% to 3% growth, down from 3% to 5% previously. Shares dropped 9.2% in premarket trading to $56.49, extending a brutal 30% decline over three months.

Revenue expectations now range from $415 million to $420 million, falling short of the prior $424 million to $428 million target. Licensing revenue remains steady at $13.5 million to $13.7 million, but growth from company-operated locations is slowing. Shake Shack still plans to open approximately eight licensed premises this quarter.

The guidance reduction signals challenges across the restaurant industry as consumers pull back on dining out. Rising labor costs and competitive pressure from both upscale and fast-food chains are squeezing margins. Shake Shack joins other restaurant operators in tempering expectations amid persistent inflation worries.

Investors are likely to scrutinize the company's expansion strategy and pricing power in upcoming earnings calls. The stock's sharp decline suggests the market may be pricing in further downside risk to guidance.