Shake Shack: Set To Thrive Under New Leadership

Summary

• Shake Shack has risen more than 40% year to date, but there's further upside ahead. Initiating the stock with a buy rating.
• The company has continued to drive accelerating same-store sales growth, as recent price increases have done little to dent profit.
• And amid an inflationary environment, particularly in labor and the price of beef, the company has increased its gross margins.
• The stock also trades at cheaper revenue and adjusted EBITDA multiples versus fast-casual industry peers like Sweetgreen and Chipotle.

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Despite the threat of a looming recession, 2024 has been a successful year in the stock market for many fast-casual restaurant brands. Shake Shack (NYSE:SHAK), the burger concept invented by Michelin-lauded restauranteur and

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SHAK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.