Finally Given a Fair Shake (Shack)

Finally Given a Fair Shake (Shack)
May 16, 2016 Market Traders Institute

Shake Shack Burgers

With the news of the retail industry’s hardships, it’s good to hear of a company that is defying expectations and looking up.


People aren’t going out to buy clothes, but they are going out for some burgers and fries.


Shake Shack (SHAK) saw increases in stock (5%), sales (9.9%), attendance (7.3%) and even saw an increase in price and order mix (2.6%). All of these numbers are proving the experts wrong who said that the burger chain wouldn’t succeed outside of the northeast, and would especially fail in California who boasts the In-N-Out chain.


However, that seems to not be the case. “While we generally don’t comment on unit-specific data, we are really excited to share that this first California Shack has been one of the strongest openings in our 12-year history,” CEO Randall Garutti said. “We’re beyond thrilled and humbled by the passionate response from our guests in this new market. We remain excited about the opportunity we have ahead of us in California as we continue to grow our brand.”


And grow they are.


There are plans to open 16 new US based stores, which is three more stores than their forecasted growth of 13 (which was already raised from their original estimate of 10).


And creating desirable burgers is just the tip of the iceberg; because the burger chain is breaking into the chicken market.


The Chick’n Shack made its debut across the nation in January, and is already making an impact.


“By expanding our menu, we are able to give our guests yet another opportunity to come back to the Shack,” Garutti said. “We’ve also better diversified our long-term exposure to commodities with the addition of this key protein.”


So is the future of Shake Shack as sizzling hot as their cheeseburgers? Will it take flight like the chicken sandwiches they now carry? Find out what our experts think of The Shack by attending one of our FREE stock and options webinars.


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