Why Shake Shack Stock Jumped 44% in April
Shares of Shake Shack (NYSE: SHAK) surged 44.4% in April, according to data from S&P Global Market Intelligence. That move sent the stock from $38 per share to $55 during the month. For context, the stock had traded at a year-to-date high of $77 in February before bottoming at about $33 in March as the COVID-19 panic raged.
On April 2, Shake Shack provided a business update to the investment community. The bad news, although not too surprising, was that same-Shack sales (the company's version of same-store sales) fell 29% in March. This was after being down 2% year to date through the end of February. And during the last two weeks of March, sales at domestic company-operated stores fell by an average of 70%. This was the result of a heavily modified operating model at the restaurants that remained open with only takeout and delivery due to the COVID-19 pandemic.
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Source Fool.com
