Inflation Is Burning This Burger Chain's Profits
Even companies with great products have to worry about inflation. With the latest print of the Consumer Price Index (CPI) coming in the hottest (e.g., the most inflationary) since May 1981, it's past time to figure out how rising prices might affect demand for some of the most popular products.
When Americans pinch pennies, you would expect value-driven offerings like Walmart, McDonald's, and Dollar General to benefit. On the other side of that equation is trendy burger joint Shake Shack (NYSE: SHAK). The company is already feeling the effects of an overheated economy. The stock is down more than 50% from its highs. If that doesn't change, shareholders could be in for more trouble ahead.
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Source Fool.com
