Shake Shack Opened 7.8% Down
Shake Shack (SHAK) opened 7.8% down after its latest earnings report, at $43.24 from $46.90. Shake Shack reported its fourth quarter earnings on March 11. The share price, however, ended up gaining 2% at market close.
Shake Shack (SHAK) started as a hot dog cart in Manhattan’s Madison Square Park. However, it grew into a restaurant chain. Now, the company offers burgers, fries, shakes, and sodas. Currently, Shake Shack has 63 restaurants in its system. For pet owners, Shake Shack also offers treats on its menu. The company’s restaurants are spread across nine countries.
In terms of its menu, Shake Shack is not much different from Burger King (QSR), McDonald’s (MCD), or Wendy’s (WEN). The difference lies in the quality of the ingredients it uses to prepare Shake Shack menu items. As an investor, if you’re not sure about a particular company and would like to invest in several restaurants at once, then you may consider investing in ETFs. The Consumer Discretionary Select Sector SPDR ETF (XLY) holds about 4% of MCD stock.
In this series, we’ll discuss Shake Shack’s fourth quarter and fiscal 2014 earnings. We’ll also discuss why the company’s shares dropped after earnings and some of the strategic initiatives that management discussed during the latest earnings call. We’ll discuss how SHAK performed in its most recent quarter, which will help you better understand your investment in the company. We’ll start by discussing the company’s revenue in the next part of this series.