This restaurant business beat analysts’ earnings estimates by $0.07 last quarter. Currently, analysts forecast an annual growth rate of 16.9% for the next five years.
Shake Shack (SHAK)
From Cabot Growth Investor
Shake Shack (SHAK) has pushed to new recovery highs in recent days and overall the stock continues to have the look of a new leader. Interestingly, while the company is emphasizing U.S.-based, company-operated restaurants in its rapid expansion plan (it’s aiming to open 32 to 35 domestic company-operated restaurants this year alone), it’s not abandoning the idea of licensed Shack’s, especially overseas. The firm is set to open 17 or so licensed stores this year, most of them overseas with an emphasis on Asia.
Back to the stock, some near-term shaking and baking is certainly possible, but we’re encouraged to see some good-sized, bullish options activity this week, which is often (not always) a good sign that big investors are expecting higher prices.
If you own some, hang on, and if you don’t, you can grab some here or on dips of a couple of points.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, June 6, 2018