What Caught Our Attention in the Investment World? – Week of November 4-8, 2019

By Kuldip K. Ambastha and Anil K. Ambastha

Shake Shack Inc. (SHAK) is an American fast casual restaurant chain headquartered in New York, NY. The company announced its latest quarterly earnings and other key figures during this week. Same-store sales grew by 2.0% in 3Q2019, which was less than the 2.5% figure expected. The company also has stated that it will be entering into an exclusive delivery partnership with Grubhub Inc. (GRUB). Because of this fact, Shake Shack Inc. officials have warned of potential volatility in stock performance and key metrics in 4Q2019. Separately, the company is planning to shut some locations temporarily for upgrades which may improve the customer experience going forward. On Tuesday, November 5, the stock had a -20.6% return for the day, which was its biggest one-day percentage decline after its IPO.

Keywords – Shake Shack Inc., SHAK, Grubhub Inc., GRUB, New York, NY, New York City, NYC, American food, fast casual, restaurant chain, same-store sales, stock performance, key metrics, upgrades, customer experience.

Disclosure – The principals and clients of Ambastha Financial LLC do not have any positions in SHAK or GRUB.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.

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