Group 1 - The article discusses Shake Shack Inc. (NYSE: SHAK) and previously assigned a hold rating due to signs of weakness in near-term demand and stretched valuation [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1]

Group 1: Stock Picks by Jim Cramer - Jim Cramer has identified Palantir, Shake Shack, and Cloudflare as stocks with strong upside potential [1][2] - Palantir reported exceptional second-quarter results with revenues exceeding $1 billion, leading to a stock surge of over 4% and a 500% rally over the past year [2][3] - Cramer predicts Palantir's stock could reach $200, indicating a potential upside of approximately 24% from its current price [3] Group 2: Shake Shack Insights - Cramer acknowledged Shake Shack's recent 14% decline but remains confident in its fundamentals under CEO Rob Lynch's leadership [4] - He emphasized the importance of long-term performance over short-term fluctuations, highlighting the company's strong social presence and value proposition [4] Group 3: Cloudflare Performance - Cloudflare reported second-quarter revenues of $512.3 million, reflecting a 28% year-over-year increase [5] - Cramer has previously praised Cloudflare's CEO Matthew Prince and expressed strong support for the company, indicating a positive outlook [5]

Market Overview - The stock markets are potentially entering a correction phase as the Q2 earnings season progresses [1] - The S&P 500 has experienced a sharp rally throughout most of 2025, driven by increasing retail investor enthusiasm for risky stocks [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, providing insights into current industry themes [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications, with his articles syndicated to popular trading apps like Robinhood [1]

Core Insights - Shake Shack reported Q2 FY2025 GAAP revenue of $356.5 million, exceeding Wall Street's estimate of $354.1 million, with non-GAAP diluted EPS at $0.44, surpassing the consensus of $0.38 [1][2] - The company achieved a year-over-year revenue growth of 12.6%, driven by a 12.3% increase in company-operated sales and a 20.2% rise in licensing revenue [2][4] - Shake Shack's operational profits and margins improved significantly, with a 190 basis point increase in restaurant-level profit margin to 23.9% and a 24.8% rise in adjusted EBITDA [4][5] Financial Performance - Non-GAAP diluted EPS increased by 63.0% from $0.27 in Q2 FY2024 to $0.44 in Q2 FY2025 [2] - Restaurant-level profit (non-GAAP) reached $82.2 million, up 22.5% from $67.1 million in the same quarter last year [2] - System-wide sales climbed to $549.9 million, reflecting a 13.7% increase compared to the prior year [4] Business Strategy - Shake Shack focuses on premium fast-casual dining with a commitment to high-quality, responsibly sourced ingredients [3] - The company prioritizes expanding its physical footprint, enhancing operational efficiency, investing in digital channels, and innovating its menu [3] - Digital and app-based orders accounted for 38% of total sales, indicating a strong push towards digital transformation [7][8] Sales Growth and Expansion - Same-Shack sales growth was modest at 1.8%, with most revenue growth attributed to new store openings, including 13 new company-operated locations and nine licensed units [6] - The company aims for 14-16% system-wide unit growth and low single-digit same-Shack sales growth for FY2025 [10] Future Outlook - Management reiterated guidance for total revenue between $1.4 billion and $1.5 billion for FY2025, with a target restaurant-level profit margin of approximately 22.5% [10] - The company plans to continue its expansion strategy while monitoring same-Shack sales trends and cost control measures [11]

Core Insights - Shake Shack (NYSE: SHAK) has seen a significant price increase, with gains of over 30% for investors who purchased shares in the $80s or $90s [1] Company Performance - The stock price of Shake Shack has rebounded strongly, indicating a potential bottoming out in its market performance [1] Investment Opportunity - Investors who entered the market at lower price points are currently benefiting from substantial returns, highlighting a favorable investment opportunity in Shake Shack [1]

Sales Performance - Same-Shack sales for the thirteen weeks ended June 25, 2025 increased 1.8% to $343.2 million, driven by a 2.5% increase in price mix, partially offset by a 0.7% decline in guest traffic [110]. - Average weekly sales were $78,000 for the thirteen weeks ended June 25, 2025, compared to $77,000 for the same period last year, primarily driven by higher menu prices [111]. - System-wide sales for the thirteen weeks ended June 25, 2025 increased 13.7% to $549.9 million compared to the same period last year [112]. - Digital sales for the thirteen weeks ended June 25, 2025 increased 16.6% to $122.5 million, representing 35.7% of Shack sales during this period [113]. - Shack sales for the twenty-six weeks ended June 25, 2025 increased 11.4% to $653.1 million compared to $586.0 million for the same period last year [118]. - The company reported a 12.4% increase in Shack sales for the thirteen weeks ended June 25, 2025, primarily due to the opening of 44 new Company-operated Shacks [118]. - For the thirteen weeks ended June 25, 2025, total revenue was $356.5 million, an increase of 12.6% compared to $316.5 million for the same period in 2024 [168]. - Shack sales for the same period reached $343.2 million, up 12.3% from $305.5 million in the prior year [168]. Financial Performance - Total revenue for the thirteen weeks ended June 25, 2025 was $356.5 million, an increase from $316.5 million in the same period last year [116]. - Net income for the thirteen weeks ended June 25, 2025 was $18.5 million, compared to $10.4 million for the same period last year, reflecting a net income margin of 5.2% [116]. - Net income for the thirteen weeks ended June 25, 2025, was $18.5 million, compared to $10.4 million for the same period in 2024, representing an increase of 77.5% [168]. - Adjusted EBITDA for the thirteen weeks ended June 25, 2025, was $58.9 million, a 24.7% increase from $47.2 million in the same period of 2024 [168]. - The adjusted EBITDA margin improved to 16.5% for the thirteen weeks ended June 25, 2025, compared to 14.9% for the same period in 2024 [168]. - Restaurant-level profit for the thirteen weeks ended June 25, 2025, was $82.2 million, up from $67.1 million in the prior year, reflecting a profit margin of 23.9% [168]. Expenses - Total expenses for the thirteen weeks ended June 25, 2025 were $334.1 million, representing 93.7% of Shack sales [116]. - Food and paper costs for the thirteen weeks ended June 25, 2025 increased 13.6% to $96.6 million, and for the twenty-six weeks, it increased 10.5% to $182.7 million [124]. - Labor and related expenses for the thirteen weeks ended June 25, 2025 increased 1.7% to $88.1 million, and for the twenty-six weeks, it increased 3.9% to $174.7 million [127]. - Other operating expenses for the thirteen weeks ended June 25, 2025 increased 15.5% to $50.8 million, and for the twenty-six weeks, it increased 15.4% to $99.0 million [130]. - Occupancy and related expenses for the thirteen weeks ended June 25, 2025 increased 10.2% to $25.6 million, and for the twenty-six weeks, it increased 10.6% to $50.2 million [134]. - General and administrative expenses for the thirteen weeks ended June 25, 2025 increased 12.0% to $40.7 million, and for the twenty-six weeks, it increased 12.5% to $81.3 million [137][138]. - Depreciation and amortization expense for the thirteen weeks ended June 25, 2025 increased 4.1% to $26.5 million, and for the twenty-six weeks, it increased 4.2% to $53.1 million [141]. - Pre-opening costs for the thirteen weeks ended June 25, 2025 increased 23.4% to $4.955 million compared to the same period last year, primarily due to increased wages and legal costs [143]. - Pre-opening costs for the twenty-six weeks ended June 25, 2025 rose 20.8% to $8.173 million, driven by higher legal costs and team expenses related to Shack openings [144]. Income Tax and Other Financial Metrics - Income tax expense for the thirteen weeks ended June 25, 2025 rose to $6.193 million, a significant increase of 95.2% compared to the prior year [154]. - The effective income tax rate for the thirteen weeks ended June 25, 2025 was 25.1%, up from 23.4% in the prior year, primarily due to higher state income tax expenses [154]. - Net income attributable to non-controlling interests for the thirteen weeks ended June 25, 2025 increased to $1.335 million from $0.714 million in the same period last year [156]. - Other income, net for the thirteen weeks ended June 25, 2025 decreased to $2.850 million, down from $3.300 million in the same period last year [149]. - Interest expense for the thirteen weeks ended June 25, 2025 increased 4.0% to $0.548 million, attributed to increased finance lease charges from new Shack openings [151]. Cash Flow and Liquidity - Cash and cash equivalents as of June 25, 2025, totaled $336.8 million, providing a strong liquidity position [181]. - For the twenty-six weeks ended June 25, 2025, net cash provided by operating activities was $96.2 million, an increase of $12.0 million compared to $84.2 million for the same period in 2024 [188]. - Net cash used in investing activities was $67.4 million for the twenty-six weeks ended June 25, 2025, compared to net cash provided of $0.4 million in the prior year, primarily due to the absence of $66.4 million in proceeds from maturities of marketable securities [189]. - Net cash used in financing activities increased to $12.7 million for the twenty-six weeks ended June 25, 2025, from $7.5 million in the same period in 2024, mainly due to higher withholding taxes related to equity awards [190]. - As of June 25, 2025, cash and cash equivalents totaled $336.8 million, up from $301.8 million at the end of the previous year [187]. - The company expects existing cash and cash equivalents and cash from operations to be sufficient to meet obligations for at least the next 12 months [185]. Company Operations and Growth - The company opened 13 new Company-operated Shacks and nine new licensed Shacks during the thirteen weeks ended June 25, 2025 [114]. - The company opened 35 net new Company-operated Shacks between June 26, 2024, and June 25, 2025, contributing to changes in working capital [188]. - The Revolving Credit Facility allows borrowings up to $50.0 million, with the potential to increase by an additional $100.0 million, and no amounts were outstanding as of June 25, 2025 [192][194]. - The company is in compliance with all covenants under the Revolving Credit Facility as of June 25, 2025 [196]. - The majority of purchase obligations are due within the next 12 months, including commitments for inventory and service contracts [200].

Tom got some committee moves. Josh, you're buying some more Shake Shack. >> Yeah.Uh they reported a great quarter. The problem is the stock's up 100% going into the print from the April low. Was literally 72 and ran to almost 150.So today it's giving back some. But when you actually look at the numbers, they were really fantastic. And Rob Lynch is doing everything that this company brought him in to do.Um earnings were uh uh 44 cents per share um which beat the analyst consensus. revenue was 356.5% million ...

Shake Shack (SHAK) reported $356.47 million in revenue for the quarter ended June 2025, representing a year- over-year increase of 12.6%. EPS of $0.44 for the same period compares to $0.27 a year ago. View all Key Company Metrics for Shake Shack here>>> Shares of Shake Shack have returned -0.3% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Same-Shack sal ...

Market Trends - The consumer sector is weakening while the enterprise sector is strengthening [1] - Two distinct economies are currently in play [3] Company Performance & Challenges - Shake Shack's stock is down 23% due to rising beef prices [1] - Shake Shack and Chipotle are facing resistance to their price points [2] - Consumers are perceiving less value in their offerings, opting for cheaper alternatives like McDonald's [2] - Costco's short-term performance has been disappointing [3] Cost Analysis - Beef prices are up in the low teens percentage [1]

Core Insights - Shake Shack (SHAK) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +18.92% [1] - The company achieved revenues of $356.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.75% and up from $316.5 million year-over-year [2] - Shake Shack's stock has increased approximately 8.6% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $364.32 million, and for the current fiscal year, it is $1.36 on revenues of $1.45 billion [7] - The estimate revisions trend for Shake Shack was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Retail - Restaurants industry, to which Shake Shack belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]