Shake Shack Reports 19 Consecutive Quarters of Same-Store Sales Growth, Plans to Triple Locations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Sales Growth Momentum: Shake Shack reported a 4.9% year-over-year increase in same-store sales last quarter, alongside a 16% rise in overall sales, indicating strong customer loyalty and pricing power despite multiple price hikes.
- Expansion Plans: The company is executing its most ambitious expansion plan to date, aiming to triple its store count, having recently opened 20 new locations, which brings its total to over 630 worldwide, likely enhancing its market share.
- Industry Comparison: In contrast to Chipotle's recent same-store sales growth of only 0.3%, Shake Shack's sustained growth highlights its competitive advantage in the fast-casual dining sector, particularly regarding customer base and profitability.
- Financial Health Status: Although Shake Shack's price-to-earnings ratio stands at 84, reflecting high market expectations for future growth, analysts advise caution in investing until valuations become more reasonable to mitigate excessive risk.
CMG
$37.9+Infinity%1D
Analyst Views on CMG
Wall Street analysts forecast CMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMG is 46.63 USD with a low forecast of 34.00 USD and a high forecast of 58.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
20 Buy
6 Hold
0 Sell
Strong Buy
Current: 37.790
Low
34.00
Averages
46.63
High
58.00
Current: 37.790
Low
34.00
Averages
46.63
High
58.00
About CMG
Chipotle Mexican Grill, Inc. is a restaurant company. The Company develops and operates restaurants that serve a menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh ingredients. The Company operates approximately 3839 restaurants in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It owns and operates all its restaurants in North America and Europe. The Company is focused in serving sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Its menu includes Burrito, Burrito Bowl, Lifestyle Bowl, Quesadilla, Salad, Tacos, Kid’s Meal, Chips and Sides, and Build your Own (digital only). It also includes Raymonte’s Chicken Bowl, The Mr. Fantasy Burrito, Carne Asada, Build-Your-Own Chipotle, catering and group order. Its subsidiaries include Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill France SAS, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
