Why Shake Shack Lost 16% in October
Shake Shack (NYSE: SHAK) trailed the market last month as the stock lost 16% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. The decrease only erased part of investors' recent positive returns, though, and shares are still outpacing the broader market's 22% increase so far in 2019.
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October's slump seemed to be driven by profit-taking from investors after shares had more than doubled since the start of the year. That quick rally raised fears that the company might have trouble meeting high expectations when it posted its third-quarter earnings results in early November. In fact, Shake Shack did surprise investors by announcing sluggish Q3 sales and worsening profitability heading into the year's final quarter.
Source Fool.com
