Do You Believe in the Growth Potential of Shake Shack (SHAK)?

Core Insights - Wasatch Global Investors reported a significant rally in US small-cap equities during Q3 2025, driven by the Federal Reserve's interest rate cut, but the Wasatch Small Cap Growth Strategy underperformed, with a decline of -3.17% compared to a 12.19% gain for the Russell 2000 Growth Index [1] Company Performance - Shake Shack Inc. (NYSE: SHAK) experienced a one-month return of -4.53% and a 52-week decline of 36.80%, closing at $83.16 per share with a market capitalization of $3.55 billion as of December 12, 2025 [2] - Shake Shack reported total revenue of $367.4 million in Q3 2025, reflecting a year-over-year increase of 15.9% [4] Investment Outlook - Despite Shake Shack's stock performance, the fundamentals of the company are considered strong, with a favorable outlook for growth as it expands its national footprint and attractive unit economics for new restaurants [3] - The company is not among the top 30 most popular stocks among hedge funds, with 33 hedge fund portfolios holding its shares at the end of Q3 2025, a slight decrease from 34 in the previous quarter [4]