Buy Alert: Shake Shack Stock Is Headed Higher
All of Shake Shack's (NYSE: SHAK) restaurants are either closed or limited to takeout and delivery business. Not surprisingly, the stock is down over 30% from its February pre-coronavirus high.
But Shake Shack, one of the most beloved restaurant chains out there, has very attractive new restaurant economics and a big opportunity to open more locations long term. And it now has plenty of cash to weather the storm.
Shack Shack has a great business model. The company has average restaurant sales, also known as average unit volume (AUV), of about $4.1 million per year, which is among the very best in the quick-service or fast-casual restaurant categories. The only restaurant concept in its category that is higher is privately-held Chick-fil-A, which had a $4.6 million AUV in 2018.
Source Fool.com
