Shake Shack (NYSE: SHAK) shares surged 6.98% in pre-market trading on Thursday, following the release of the company's fourth quarter and fiscal year 2024 financial results. The better-than-expected performance and optimistic outlook drove investor enthusiasm, fueling the stock's rally.

For the fourth quarter of 2024, Shake Shack reported total revenue of $328.7 million, a 14.8% increase compared to the same period in 2023. This growth was driven by a 4.3% rise in same-Shack sales and a 13.3% increase in system-wide sales, reaching $500.7 million.

The company's profitability also improved, with operating income reaching $10.2 million and net income of $9.3 million, or $0.21 per diluted share. Notably, the restaurant-level profit margin stood at an impressive 22.7%, reflecting operational efficiency and cost management efforts.

Shake Shack's positive performance was underpinned by several key factors, including the growing popularity of its Apollo Go robotaxi service in China, as well as strategic investments in generative AI and autonomous driving technologies. These initiatives position the company for future growth and diversification in a challenging economic environment.

Looking ahead, analysts are optimistic about Shake Shack's prospects, particularly in the autonomous driving sector. According to Guotai Junan International analyst Li Muhua, "Autonomous driving will turn into a key trade in the coming three months, aided by Shake Shack's launch of its robotaxi next month." Muhua expects 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.