Should Shake Shack's Shares Have Sunk So Sharply?
If Shake Shack (NYSE: SHAK) had been founded in, let's say... Columbus, Ohio -- the birthplace of both Wendy's and Buffalo Wild Wings -- investors wouldn't hear nearly so much about it. It has only 250 or so locations, after all. But with its base in New York City, the stock seems to be powered by a fair amount of home-team hype. What that means in real terms is that the stock is trading at an extremely high earnings multiple. Lower now, though, after a not quite as good as expected third-quarter report.
In this segment of the Nov. 5 MarketFoolery podcast, host Chris Hill and MFAM Funds' Bill Barker discuss the wild ride that the stock has taken relative to the smooth growth story of the underlying business, whether its exclusivity deal with Grubhub (NYSE: GRUB) could have been wise, the outlook, and more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Source Fool.com
