Shake Shack Inc. (NYSE:SHAK) shares closed more than 4% lower on Friday on the company’s Q1/22 guidance miss, while Q4 results came in better than the consensus estimates. Q4 EPS and revenues were ($0.11) and $203.3 million, beating the consensus estimates of ($0.18) and $202.54 million, respectively.

Management expects Q1/22 revenue to be $196-$201.4 million, which is below the Street estimate of $210.87 million.

Analysts at Oppenheimer provided their views on the company following the results, reducing its EBITDA estimates through 2023 owing to tougher food/ labor inflation and higher G&A expenses.

To fight the difficult cost environment, the company is raising menu pricing to 6-7% in March and appears more willing to pull the pricing lever again if needed. According to the analysts, near-term sales estimates likely also move lower to reflect January's industrywide Omicron-related headwind, which now appears to be in the rear-view with February quickly bouncing back.