Josh Brown, CEO, Ritholtz Wealth Management
Shake Shack Inc
SHAK-N
HOLD
Mar 14, 2025
Consumer discretionary hasn't held up, because consumer sentiment has fallen, taking SHAK down. But SHAK's fundamentals remain the same. RSI is at 30, so is oversold. That said, it's trendless and this is not a buying opportunity. It could be rangebound for a while. He's long-term and will hold. Traders love it here, though.
Time to add? They are only in 26 states so far, so there is a long playing field for SHAK-N. It trades at a high multiple, so if they disappoint it can become very painful quickly. Be cautious. He prefers to own the established names like SBUX-Q or CMG-N.
Down today on weak guidance. This was going to be down no matter what, because now no stock is going up despite earnings. If someone is selling a stock because of Omicron, it's stupid. The pandemic won't last forever. The brand value alone is worth half its market cap. Today's drop is not meaningful. He's long. There's a bright future ahead, global, larger with digital/online ordering. Loves the company.
Maybe the US consumer is slowing, but remember that they continue to expand across the world take share in those places. They've done everything that a growing company should do, including hiring a CEO (from Papa John's) who can expand and has expanded a company.
Is -7% the last month, a weak year so far. At a 34 RSI and is very oversold. They guided revenue at +16-17% this year. If it reports that next Thursday when they report, this is a good set up.
Just reported a mixed quarter, but rallied. The stock has bottomed. Report a slight revenue miss with a same-store sales growth and trimmed their full-year revenue forecast.
Consumer discretionary hasn't held up, because consumer sentiment has fallen, taking SHAK down. But SHAK's fundamentals remain the same. RSI is at 30, so is oversold. That said, it's trendless and this is not a buying opportunity. It could be rangebound for a while. He's long-term and will hold. Traders love it here, though.