1 Thing McDonald's Could Learn From Shake Shack
The main reason investors are attracted to Shake Shack (NYSE: SHAK) is its potential for dramatically higher sales from expanding its store base outside of the New York area. The "better burger" chain is growing its global footprint at a 30% annual rate, and that pace isn't hard to maintain given that it only operates 218 locations today.
Sure, the company isn't going to approach anything near the 36,000 restaurants that McDonald's (NYSE: MCD) manages. But a doubling of its locations is possible over just the next few years.
Meanwhile, Shake Shack has an attractive metric it's holding over the fast-food titan right now. In its second-quarter earnings report, the chain announced that customer traffic is still rising, while Mickey D's comparable metric has been stuck in negative territory for over a year.
Source Fool.com