Does Shake Shack's Stock Deserve to Be Soaring Right Now?
"Better burger" shop Shake Shack (NYSE: SHAK) has rallied more than 20% since hitting its low point in September, and its third-quarter earnings report had shares running higher, before giving back some of the gains.
Yet does Shake Shack deserve to be doing so well? Although it recorded higher profits for the period, sales came up short, and it continues to experience shortfalls on comparable sales, customer traffic, and average weekly sales. With rival The Habit (NASDAQ: HABT) reporting negative comps for the first time in 15 years even as fast-food outlets such as McDonald's (NYSE: MCD) and Burger King show rising sales, it's further proof the bubble has burst on the so-called better-burger fad.
Image source: Getty Images.
Source: Fool.com
Shake Shack Inc. Stock
€86.74
-0.480%
Currently there is a rather positive sentiment for Shake Shack Inc. with 20 Buy predictions and 3 Sell predictions.
As a result the target price of 106 € shows a positive potential of 22.2% compared to the current price of 86.74 € for Shake Shack Inc..
