Shake Shack (SHAK) posted preliminary fourth quarter results that beat expectations, but investors don't seem convinced.

Shares of the fast-casual chain fell 6% on Monday after the company reported same-store sales grew by 4.3% last quarter. Total revenue jumped around 15% year over year to $328.7 million.

For full fiscal year 2024, same-store sales are up 3.6%, while revenue is up 15% to $1.25 billion. The company gave 2025 guidance that included a 16% to 18% increase in revenue and a 3% jump in same-store sales.

Shake Shack made a "lot of progress" this past year "in an environment where you still have concerns around wage inflation and potentially some commodity inflation, and you've got some risks that are kind of popping up here over the last few weeks [like the bird flu]," CEO Rob Lynch told Yahoo Finance at the ICR conference in Orlando, Fla.

"We felt like it was better than what we've delivered in a long time, and better than what is the consensus forecast, but maybe not as aspirational [as] some other folks had in their mind," he added. The company's stock has popped 85% in the past year.

For 2025, it projects to expand restaurant margins to 22% from 21.4%, the highest margin in the last eight years.

William Blair analyst Sharon Zackfia pointed to "commodity cost fluctuations" and "ongoing pressure from wage inflation" as two key risks to the business. She has an Outperform rating on the stock.

Per Lynch, Shake Shack is currently projecting low single-digit inflation for its supply chain, and its team was "positively surprised by the stability of the beef market despite some of the projections heading into this year."

Labor inflation is projected to stabilize at 3% to 4% this year, he said.

As Shake Shack reaches its 10th anniversary of going public on Jan. 30, 2015, it shared a new growth target for its company-operated footprint.

It aims to reach at least 1,500 company-operated Shacks over time. Last year, there were 329 company-operated locations, including a record 43 company-operated openings. It expects to launch 45 more this year.

Lynch said the company is adding new formats like drive-through and stores with smaller footprints.

He's also looking to Chipotle's (CMG) model, calling it "best in class" in opening company-operated restaurants "super fast." The burrito chain has a long-term goal of reaching 7,000 locations in North America and expects to open between 315 and 345 company-owned restaurants in 2025.

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While it doesn't offer franchising in the US, Shake Shack works with licensing partners for international restaurants. Lynch called the license business a "huge opportunity." It plans to open around 35 to 40 licensed locations this year.

"We're not in anywhere in Europe. We're not in South America, we're not in Africa, we're not in Australia, there's a huge amount of white space for us to go and build a licensed business," said Lynch, who has been the CEO of Papa John's (PZZA), president of Arby's, and vice president of marketing at Taco Bell (YUM).

"Going into these markets and meeting with these licensed partners and understanding what their needs are, and building a plan collaboratively with them to help accelerate their growth, is kind of what I've done for the last 15 years."

However, Zackfia pointed out a risk with Shake Shack's plans is "operational strains associated with aggressive unit development plans."

The burger chain, which grew out of a hot dog cart in New York City 20 years ago, has kept evolving. Lynch said there could be more differentiated menu items in the future.

"As long as we can optimize it operationally, the sky's the limit from an innovation standpoint."

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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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