Is Shake Shack Inc. a Buy?
Shake Shack (NYSE: SHAK) has lots of opportunities to expand by adding more locations, but it's going to struggle to increase same-store sales at existing locations as it gets bigger.
That problem was evident in its most recent earnings report. The company saw its total revenue rise by nearly 30% to $94.6 million, with sales up 26.8% to $91.1 million. The problem is those increases occurred only because it added restaurants -- same-store sales dropped by 1.6%.
Shake Shack can grow. It can make more money and it can continue to have a devoted fan base. What it's going to struggle to do is make more money at its existing locations, and that's going to act as an anchor on its stock price.
Source: Fool.com
Shake Shack Inc. Stock
€100.25
6.090%
With 26 Buy predictions and 4 Sell predictions Shake Shack Inc. is one of the favorites of our community.
As a result the target price of 114 € shows a slightly positive potential of 13.72% compared to the current price of 100.25 € for Shake Shack Inc..
