Shake Shack Jumps on Q3 Sales Growth

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Shake Shack ($NYSE:SHAK) is an American fast casual restaurant chain based in New York City. It specializes in burgers, hot dogs, shakes, and frozen custard. After posting comparable sales growth of 6.3% in Q3, Shake Shack jumps in early trading, topping the consensus mark of 5.2%.

The company’s strong performance was driven by new menu items, such as the Chick’n Shack sandwich, and continued expansion in international markets. Shake Shack’s stock has been on a tear in recent years, as investors have bet on the company’s growth potential.

Market Price

SHAKE SHACK Jumps on Q3 Sales Growth The media exposure for Shake Shack has been mostly mixed, but the company’s stock jumped on Thursday after it reported strong third-quarter sales growth. Shake Shack’s stock opened at $50.0 and closed at $47.6, down 8.2% from its last closing price of 51.9. Despite the drop in stock price, Shake Shack’s sales growth is impressive. Shake Shack also announced that it plans to open several new locations in the coming year, which should help boost sales even further.

Overall, Shake Shack’s strong third-quarter sales growth is a positive sign for the company’s future. If Shake Shack can continue to grow sales at a similar pace, it should be able to generate healthy profits for shareholders.

VI Analysis

VI app’s simple analysis of a company’s fundamentals can give you a quick overview of its long term potential. In the case of SHAKE SHACK, the app rates it as a medium risk investment in terms of financial and business aspects. However, it also detects 4 risk warnings in the income sheet, balance sheet, cashflow statement, and non-financial areas. To get more detailed insights, become a registered user of VI app.

VI Peers

In the fast food industry, there is always stiff competition between the top companies. This is no different for Shake Shack Inc, a well-known American chain of hamburger restaurants. Some of their main competitors include BT Brands Inc, Doutor Nichires Holdings Co Ltd, and Kyochon Food&Beverage Co Ltd. While each company has its own unique selling points, they all share one common goal: to be the best in the industry.

– BT Brands Inc ($NASDAQ:BTBD)

PBT Brands Inc is a company that manufactures and sells a variety of products, including food, beverages, and health and beauty products. The company has a market cap of 12.92M as of 2022 and a return on equity of 2.15%. PBT Brands is a publicly traded company on the NASDAQ Stock Exchange.

– Doutor Nichires Holdings Co Ltd ($TSE:3087)

Doutor Nichires Holdings Co Ltd is a Japanese food and beverage company that operates a chain of coffee shops across Japan. As of 2022, the company had a market capitalization of $72.16 billion and a return on equity of 2.52%. The company’s coffee shops offer a range of coffee and tea beverages, as well as light meals such as sandwiches and salads.

– Kyochon Food&Beverage Co Ltd ($KOSE:339770)

Kyochon Food & Beverage Co Ltd is a South Korean company that specializes in chicken products. The company has a market cap of 248.33B as of 2022 and a return on equity of 11.08%. Kyochon was founded in 1991 and has since grown to become one of the largest chicken chains in South Korea. The company has over 1,000 outlets in South Korea and also has a presence in China, the Philippines, and the United States. Kyochon’s product offerings include chicken wings, drumsticks, and whole chickens. The company also offers a variety of side dishes and desserts.

Summary

If you’re looking for a restaurant stock that’s performed well in recent years, Shake Shack is worth considering. Of course, no stock is without risk, and Shake Shack is no exception. The company is still relatively new, and it faces stiff competition from well-established players like McDonald’s . But if you’re willing to stomach the risks, Shake Shack could be a good addition to your portfolio.