2 Reasons Shake Shack Stock Will Keep Climbing in 2021, and 1 Reason It Could Crash
Soaring highs and plummeting lows are familiar territory for investors who have been around Shake Shack (NYSE: SHAK) for a while, even before the novel coronavirus pandemic. As optimism builds that the economy will gradually reopen this year, the restaurant chain's stock is soaring close to all-time highs. Having successfully navigated the health crisis and armed with cash to execute on its aggressive expansion plans, Shake Shack could continue to win this year.
But make no mistake, this is an expensive restaurant stock. I think the positives and negatives cancel each other out, and I'm calling this one a "hold" if you own it already and calling for patience if you don't. Here's why.
Shake Shacks are notoriously busy stores -- at least they were. Located in busy urban centers (most of them concentrated in the northeastern U.S.), the burger, hot dog, and milkshake chain was one of the hardest hit in the industry by the COVID-19 health crisis.
Source Fool.com
