Shake Shack reported higher second-quarter sales, but profit slipped as operating expenses increased.

The restaurant chain posted a profit of $15.7 million, or 37 cents a share, for its three months ended July 1. That compares with a profit of $17.1 million, or 41 cents a share, in last year's comparable period.

Stripping out one-time items, earnings were 43 cents a share. Analysts surveyed by FactSet expected adjusted earnings of 31 cents a share.

Total revenue climbed 17% to $417.6 million, in line with Wall Street models.

Same-store sales, which account for store openings and closings, climbed 3.5%. Analysts had expected a 2.6% increase.

Total expenses jumped 19% to $396.9 million, driven in part by higher food and paper costs, as well as higher labor and other operating costs.

"Our second-quarter results reflect a business that continues to execute across sales, development, and profitability despite navigating one of the most challenging cost environments we have faced in many years," Chief Executive Rob Lynch said.

Shares climbed 3.6%, to $68.57, in premarket trading.