Shake Shack Earnings Add Uncertainty to the Outlook
Investors had been enthusiastic heading into Shake Shack's (NYSE: SHAK) third-quarter earnings report thanks to strengthening operating trends this year. That optimism was powered by the fact that the chain returned to steady sales growth in early 2019 and was even winning higher customer traffic, outpacing rivals including McDonald's.
In its results this week, Shake Shack showed more progress along this growth path. However, those wins were overshadowed by soaring costs and a shifting expansion profile that together add lots of uncertainty for investors looking to judge the fast-food stock's long-term earnings strength.
Let's take a closer look.
Source Fool.com
