Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1][2]. Company Analysis: Shake Shack (SHAK) - Shake Shack currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), which is associated with a historical outperformance when combined with a Style Score of A or B [4]. - Over the past week, SHAK shares increased by 2.51%, while the Zacks Retail - Restaurants industry rose by 2.58% [6]. - In a longer timeframe, SHAK shares have appreciated by 68.29% over the past quarter and 65.84% over the last year, significantly outperforming the S&P 500, which increased by 17.01% and 13.4% respectively [7]. - The average 20-day trading volume for SHAK is 1,092,164 shares, indicating a bullish trend when combined with rising stock prices [8]. Earnings Outlook - In the last two months, four earnings estimates for SHAK have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.33 to $1.34 [10]. - For the next fiscal year, four estimates have also moved higher without any downward revisions [10]. Conclusion - Given the strong momentum indicators and positive earnings outlook, Shake Shack is positioned as a promising investment opportunity with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Shake Shack (SHAK) - Shake Shack currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [2][3] - The stock has shown significant price performance, with a 7.52% increase over the past week and a 9.3% increase over the past month, outperforming the Zacks Retail - Restaurants industry [5] - Over the last quarter, Shake Shack shares have risen 64.38%, and 57.22% over the past year, significantly outperforming the S&P 500, which increased by 7.91% and 13.53% respectively [6] Trading Volume - The average 20-day trading volume for Shake Shack is 1,223,675 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 11 earnings estimates for Shake Shack have been revised upwards, while only 1 has been revised downwards, leading to an increase in the consensus estimate from $1.26 to $1.34 [9] - For the next fiscal year, 12 estimates have moved upwards with no downward revisions, indicating a positive earnings outlook [9] Conclusion - Given the strong momentum indicators and positive earnings revisions, Shake Shack is positioned as a promising investment opportunity with a Momentum Score of B and a Zacks Rank of 2 (Buy) [11]

Group 1 - Groupon is one of 209 individual stocks in the Retail-Wholesale sector, which is currently ranked 11 in the Zacks Sector Rank [2] - Groupon has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Groupon's full-year earnings has increased by 269.6% in the past quarter, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Groupon's stock has increased by approximately 204%, significantly outperforming the Retail-Wholesale sector's average return of 1.4% [4] - Another outperforming stock in the Retail-Wholesale sector is Shake Shack, which has returned 4.4% year-to-date [4] - Groupon belongs to the Internet - Commerce industry, which includes 38 companies and is currently ranked 96 in the Zacks Industry Rank, with an average gain of 1.8% this year [5] Group 3 - Shake Shack is part of the Retail - Restaurants industry, which consists of 39 stocks and is ranked 150, with a year-to-date decline of -0.4% [6] - Both Groupon and Shake Shack are showing solid performance, making them noteworthy for investors interested in Retail-Wholesale stocks [6]

Industry Overview - The restaurant industry has faced disappointment over the past three months, with industry stocks collectively slipping 2%, while the S&P 500 advanced 5.5% [1] - High costs and sluggish foot traffic continue to pressure margins and momentum within the industry [1] Traffic and Pricing Challenges - A rapid increase in menu prices is the primary reason behind the erosion of customer traffic, leading to challenges in maintaining customer counts as consumers express frustration with rising prices [2] Standout Performers - Despite the overall industry decline, Cracker Barrel Old Country Store, Inc. (CBRL) has increased by 46.2%, Shake Shack Inc. (SHAK) by 41.7%, and Wingstop Inc. (WING) by 62.6% over the same period, driven by brand loyalty, strategic innovation, and investor optimism [3] Company-Specific Insights Cracker Barrel - Cracker Barrel is benefiting from menu innovation, digital initiatives, and strategic remodels, with a 1% increase in comparable-store restaurant sales in the fiscal third quarter, marking the fourth consecutive quarter of positive growth [8] - Earnings estimates for fiscal 2025 and 2026 have risen by 9.9% and 8.4% to $3.10 and $3.48 per share, respectively, indicating strong momentum [9] Shake Shack - Shake Shack's growth is driven by enhanced operations, menu innovation, and store openings, with plans to open 45-50 company-operated Shacks this year [11] - Earnings estimates for 2025 and 2026 have been revised upward by 6.3% and 9.6% to $1.34 and $1.71 per share, respectively [12] Wingstop - Wingstop is experiencing growth from expansion efforts and a new kitchen operating platform, with international expansion becoming a significant growth driver [14] - Earnings estimates for 2025 and 2026 have seen upward revisions of 6.8% and 5% to $3.90 and $5.03 per share, respectively [16] Summary of Opportunities - Cracker Barrel, Shake Shack, and Wingstop are demonstrating strong brand execution and strategic innovation, trading above their 50-day moving averages, indicating solid technical strength [17] - Rising earnings estimates and clear growth strategies position these stocks as compelling opportunities despite a challenging macroeconomic backdrop [18]

Core Viewpoint - Shake Shack (SHAK) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling actions, which in turn affects stock prices [4]. Shake Shack's Earnings Outlook - The recent upgrade for Shake Shack reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Analysts have raised their earnings estimates for Shake Shack, with the Zacks Consensus Estimate increasing by 3.2% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Shake Shack's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Shake Shack (SHAK) FY Conference June 11, 2025 02:15 PM ET Speaker0 Hi, everyone. Thanks for participating in Oppenheimer's twenty fifth Annual Consumer Conference. I'm Mike Tamas, and I cover Shake Shack here at Oppenheimer. Know, Shake Shack's been one of our top picks in 2025, and we remain excited about management's new strategies to stimulate same store sales, enhance margins, and accelerate unit growth. We're gonna dig into all those topics and much more with Katie Fogarty, Shake Shack's CFO. She join ...

Summary of Shake Shack Conference Call Company Overview - Shake Shack is a leader in the fast casual premium burger segment, known for generating good returns on capital and having significant growth potential [1][2] Key Insights and Arguments - **Management Changes and Strategy**: The management team has been restructured to align with the company's growth ambitions, aiming to expand from 300 to 1,500 locations. The focus is on identifying opportunities across all business facets, including operations, supply chain, and brand marketing [5][6][7] - **Growth Targets**: The company has reiterated its guidance for revenue growth in the low teens percentage and aims to expand restaurant margins by 50 basis points annually. Adjusted EBITDA is expected to grow in the low to high teens percentage [3][16] - **Cost Management**: Shake Shack has successfully reduced construction costs by 10% despite inflationary pressures, while maintaining average unit volumes (AUVs) and improving margins [9][10] - **Market Expansion**: The company is exploring various formats, including drive-thrus, to penetrate new markets and optimize its real estate strategy. There is a focus on both existing and untapped markets across the U.S. [10][11][12] - **Brand Recognition**: Shake Shack benefits from strong brand recognition, even in markets where it does not currently operate. The brand is perceived as a destination rather than just another fast food option [12][13] Financial Performance - **Consumer Trends**: The company experienced a challenging start to the year, with a 3.6% comparable sales growth driven by 6% pricing. However, there are concerns about the sustainability of this model in a non-inflationary environment [23][24] - **Operational Improvements**: Despite a slight decline in sales in April, the company has made significant operational improvements, leading to margin accretion even with lower pricing [27][28] - **Promotional Strategy**: Shake Shack's promotional strategies are designed to be margin accretive, focusing on driving traffic without diluting margins. The company runs promotions that encourage higher spending per visit [44][48][49] Marketing and Innovation - **Culinary Innovation**: The company is committed to enhancing its culinary offerings and has established a robust pipeline for new products. This includes a focus on consumer testing and feedback to drive innovation [30][31][32] - **Marketing Strategy**: Shake Shack is developing a guest-centric marketing strategy to better understand and engage its target audience. The goal is to differentiate the brand through effective communication and innovative culinary offerings [55][56][59] Supply Chain and Operations - **Supply Chain Optimization**: The company is focusing on improving its supply chain efficiency and redundancy as it scales. This includes leveraging existing supplier relationships while exploring new opportunities [64][65][66] - **Free Cash Flow**: Shake Shack has generated positive free cash flow for the first time as a public company, which will be reinvested into new restaurant development to support growth [67][68] Additional Insights - **Consumer Experience**: Shake Shack aims to create a unique dining experience that encourages repeat visits, distinguishing itself from competitors in the fast food industry [12][47] - **Long-term Vision**: The company's mission is to expand its fine casual experience to more communities, emphasizing the importance of brand loyalty and customer engagement [14][61]

Shake Shack (SHAK) FY 2025 Annual General Meeting June 04, 2025 09:00 AM ET Speaker0 Thank you, and good morning, everyone. I'm excited to be here and even more excited about what lies ahead for Shake Shack. It's hard to believe that I just celebrated my anniversary of as the CEO of this great company, and I look forward to working with our amazing team members to realize our aspirational goals. We greatly appreciate your interest in Shake Shack and for taking the time to join us today. I'd like to start by ...

Core Viewpoint - Shake Shack Inc. (SHAK) has experienced a significant share price increase of 34.2% over the past year, outperforming the industry growth of 8.7%, driven by menu innovation, digital initiatives, and unit expansion efforts, although challenges from weather and macroeconomic conditions remain a concern [1] Growth Drivers for SHAK Stock - Culinary innovation is a key differentiator for Shake Shack, with new menu items like the Dubai Chocolate Pistachio Shake receiving strong consumer response [2] - The introduction of the first-ever fish sandwich in Hong Kong has also been successful, quickly becoming the second-best-selling protein [3] - Digital sales accounted for 38% of total transactions in the fiscal first quarter, reflecting a 130-basis-point increase year over year, supported by new digital menu boards and a guest recognition platform [4] - The company plans to open 45 to 50 new locations in 2025, marking its largest development year, particularly in high-growth regions [5] - Shake Shack's licensed business is expanding, with seven new licensed shacks opened in the fiscal first quarter, enhancing brand visibility and global appeal [6] Concerns for Shake Shack Stock - The company faced operational challenges in the fiscal first quarter due to severe weather events and economic uncertainty, particularly in major markets like Los Angeles and New York City, which accounted for about 75% of overall headwinds [8][9] - These challenges resulted in a 4.6% decline in overall traffic and a 1% drop in same-store sales in April, compounded by the effects of a previous menu price increase [9] Overall Assessment - Shake Shack demonstrates long-term growth potential through strong brand recognition, innovative offerings, and an ambitious expansion plan, but faces near-term pressures from weather disruptions and economic uncertainty [10]

Group 1 - Shake Shack is entering the loyalty program space to boost business amid economic uncertainty, offering $1 soft drinks for app or website orders [1] - Starting in June, customers who order a burger or BBQ sandwich at least twice within a specific period will be eligible for discounts [2] - The company plans to launch a more extensive loyalty platform later this year, following the trend set by competitors [3] Group 2 - Loyalty programs are increasingly popular in the fast-food industry as a strategy to encourage repeat business, especially during inflationary periods [5] - The U.S. economy is under pressure, with consumer confidence declining and major chains warning of a slowdown in dining out due to inflation [6] - Nearly 80% of Americans now view fast food as a luxury due to high prices [8] Group 3 - Shake Shack aims to expand its footprint, raising its target for company-operated restaurants in the U.S. to at least 1,500, representing a nearly 356% increase from current operations [9] - The company plans to open about 45 company-operated locations and 35-40 licensed locations by 2025 [10]