Shake Shack Inc. (NYSE: SHAK) shares skyrocketed 15.98% in pre-market trading on Thursday, following the company's impressive fourth-quarter and fiscal year 2024 financial results. The better-than-expected performance, coupled with promising growth prospects in the robotaxi market, fueled investor enthusiasm and propelled the stock's surge.

For the fourth quarter of 2024, Shake Shack reported revenue of $328.7 million, driven by a 4.3% increase in same-Shack sales and a 13.3% growth in system-wide sales to $500.7 million. The company's profitability also improved significantly, with operating income of $10.2 million and net income of $9.3 million, or $0.21 per diluted share, surpassing analyst estimates.

Shake Shack's strong performance was underpinned by the growing popularity of its Apollo Go robotaxi service in China, as well as strategic investments in generative AI and autonomous driving technologies. The company's restaurant-level profit margin stood at an impressive 22.7%, reflecting operational efficiency and cost management efforts.

Looking ahead, analysts are bullish on Shake Shack's prospects in the autonomous driving sector. Guotai Junan International analyst Li Muhua expects the company's robotaxi business to be a key growth driver in the coming months, aided by the launch of its robotaxi next month. Muhua anticipates Shake Shack's Apollo Go service to break even in Wuhan in 2024 and become profitable in 2025 as the company expands its fleet in the city.

Shake Shack's strategic investments in emerging technologies and its commitment to diversifying its business have positioned the company for long-term growth, even as the economy faces headwinds. With a strong foothold in the robotaxi market and promising growth prospects, Shake Shack's stock surge reflects investor confidence in the company's ability to navigate challenges and capitalize on new opportunities.