Shake Shack has single-store economics that are far superior to Chipotle's early days.
The company is conservatively managed and shareholder-friendly; it sustainably invests in growth using its own cash flows, not diluting shareholders as the false bearish narrative suggests.
GAAP earnings do not represent the true underlying value of Shake Shack; the business is cheap considering cash flow.
Upscale fast-casual restaurants with higher-quality food are gaining share from tired legacy brands like McDonald's and Yum.
The sell-off has presented an opportune moment for long-term investors.
Shake Shack's (SHAK) 40% decline from 52-week highs represents a compelling buying opportunity. It had simply run too far, but now is materially undervalued as the false bearish narrative has gained traction.