Is Shake Shack Stock a Buy?
Shake Shack (NYSE: SHAK) stock is currently trading down about 48% from 52-week highs reached in 2019, and bargain hunters are considering whether to take a bite of what was a growth stock. But, surprisingly, purchasing Shake Shack stock around $55 per share isn't all that rare an opportunity. In fact, at some point in every year since the company went public in early 2015, you've been able to buy shares of the restaurant chain at this price or lower.
Thus far, the stock hasn't been all that great as a long-term investment. Despite growing revenue 400% since its IPO, it seems there's always something holding Shake Shack back. In 2020, the company is obviously hindered by COVID-19. During the second quarter, total revenue fell 40% year over year to $91.8 million, resulting in a disappointing $18 million loss.
Investing in chronic underperformers is often a losing strategy. But current coronavirus challenges are motivating the company to tweak operations. Therefore, now is a timely moment to revisit Shake Shack as a potential stock investment.
Source Fool.com
