Shares of burger chain Shake Shack (NYSE: SHAK) skyrocketed on Thursday after the company reported financial results for the fourth quarter of 2023. While other restaurant chains struggle with lackluster restaurant traffic, Shake Shack is encouragingly gaining ground. And this is a big reason that Shake Shack stock was up a whopping 23% as of noon ET and hitting 52-week highs.

Shake Shack is a burger chain with a little more than 500 locations worldwide. And whereas many other restaurant chains have seen fewer diners as menu prices have increased, Shake Shack saw 1.4% year-over-year growth with restaurant traffic in Q4, contributing to a 2.8% increase in same-restaurant sales.

With higher sales per location, Shake Shack's restaurant-level operating margin (a key profit metric that excludes corporate expenses) was 20% in 2023 -- a very good number and its highest since 2019.

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Source Fool.com