Shake Shack Gets A Big Wake-Up Call

Burgers, Fast Food, Shake Shack, Restaurants, Cosi, Same-Store Sales

Shake Shack has been the darling of premium fast food, but its same-store sales are down

Burgers, Fast Food

27.2.2020

Shake Shack has been the darling of premium fast food , but its same-store sales are down

Shake Shack has been the darling of premium fast food , but its same-store sales are down.

Shake Shack is starting to feel like it's everywhere. (Photo by Gary Hershorn/Getty Images) Getty Images For much of the past decade, Shake Shack has been the darling of premium fast food. Customers waited in long lines at its original 2001 hot dog cart in New York’s Madison Square Park. And the lines continued when it moved to an actual shack in 2004, serving burgers and shakes. But in the past few years, Shake Shack has experienced explosive growth — perhaps too explosive, as it turns out. Analysts saw all kinds of problems in Shake Shack’s fourth-quarter results, released earlier this week. Although its overall revenue grew nearly 22 percent in the quarter, and was up 29.4 percent for the full year, income from its existing stores declined last fall, reflecting concerns that Shake Shack may now be over shacked. For the year, same store sales rose 1.9%, but that’s not encouraging for a company that is still on a growth path. The Motley Fool noted that Shake Shack now has opened at least one store in the nation’s busiest cities, as well as many of their suburbs and some upscale college towns (more on that below). It said that 12 of its new stores in the fourth quarter were in places where there already was a Shake Shack. That plays directly against Shake Shack’s image of being unique, and a place where it is worth waiting far longer, and paying more for a burger, than at a typical fast food restaurant. Traders were definitely not happy with what they heard on Monday. Last Thursday, Shake Shack traded as high as $78.10. On Tuesday, it opened at $62.36, although it recovered to close above $63. In mid-day trading Wednesday, it was sluggish at around $63. QSR Magazine, the trade publication that follows the fast food industry, says that Shake Shack In all, Shake Shake opened 73 new stores in 2019, an increase of 32.2 percent, and ended the year with 275 total stores, including those owned by the company, ones that are franchised and international locations. It also began introducing delivery, in which about 50 percent of its location participate. Shake Shack officials say they plan to ride out the volatility. “Our goal in delivery remains unchanged: To prioritize guest experience while capturing long-term revenue growth,” Tara Comonte, Shake Shack’s president and chief financial officer said on Monday’s conference call. However, an expanding Shake Shack may not be able to replicate the buzz that originally surrounded it. I ate at my first Shake Shack in late 2015 at its location in Chestnut Hill, Mass., a short drive from Boston. It was the holidays, and the restaurant was jammed. I waited about 30 minutes to order a burger, fries and a chocolate mint shake. On subsequent visits, there was always a line of a few customers, but I figured out a strategy of calling in an order (this was pre-app and pre-delivery) and collecting my food rather than wait for it. I subsequently moved home to Ann Arbor, Mich., where Shake Shack opened a store last July. In August, I received an email inviting me to sign up for the Shake Shack app and I’d receive free food as a reward. I did so, and went into the new Ann Arbor store on a week day, ready to collect. Unfortunately, the store was not yet connected to the app, and couldn’t accept my order from it. Instead, I placed an in-person order, and the manager made good on the offer for free food. On that visit, I noticed this Shake Shack was nearly empty. I chalked that up to the mid-afternoon time, but on subsequent visits, I haven’t had to wait in line and have easily found a seat. This Shake Shack is a few miles from the University of Michigan, tucked away in an upscale strip mall, where you have to look to find it. I have to think a Shake Shack closer to campus would be busier. However, Ann Arbor can be a brutal place for food competition, especially higher priced places. Last month, Elevation Burger, another upscale burger place, Read more: Forbes

Burger, fries and shake is close to $20. Crazy. too expensive, not good enough Not surprising. It’s too expensive to go regularly. They should introduce some Combo pricing and a Kids meal. $SHAK comida saludable 👍🙂👏

Stocks making the biggest moves midday: Home Depot, Moderna, Mastercard, Shake Shack and moreThese are the stocks posting the largest moves in midday trading. I hope to see GM buy a stake in Tesla while United buys a large portion of it's stock back. brikeilarcnn CNNPolitics cnnbrk BernieSanders We didn't take it out of context you all did. All Bernie ment was that even Castro how evil he was wanted his people to read and write. Therefor Bernie wants oppertunities for all with a free education without debt.

McDonald's unveils 'Golden Shamrock Shake' eBay auction and contest for special cups, each worth $90KFor the Shamrock Shake's 50th anniversary, McDonald's is auctioning off an 18-karat gold cup with jewels to support Ronald McDonald House Charities.

What Disney’s CEO Shake-Up Means for Its Movie BusinessAfter rocking a quiet Tuesday afternoon with news of leadership changes at the very top of the Walt Disney Corporation, attention has turned to respective divisions at the Hollywood superpower &82… Fire Kathleen. It probably means he’s about to go under like Weinstein, but more so in the spirit of Epstein, so he can’t be CEO.

Exactly How Many Calories You Can Expect from a McDonald’s Shamrock ShakeIt’s back for a limited time to celebrate the 50th anniversary of its invention.

Mike Bloomberg Can't Shake The Legacy Of Stop-And-Frisk Policing In New YorkFor years, Mike Bloomberg defended the police tactic known as 'stop-and-frisk,' even after leaving office. It wasn't until he launched his presidential bid that he said he regrets the policy. It's a reversal that some people just don't buy. It was an attempt to solve a problem that there is still not solution to. I don’t buy it and he shouldn’t apologize for it I will support whoever defunds NPR. NPR gets taxpayer money but only disseminates Democrat propaganda. That has to stop. Now! DefundNPR

Vegan Dreams Come True as Disney Parks Partner With Impossible MeatsGet ready for a petite Impossible Burger with guacamole and pepper jack cheese, Impossible Cheeseburger macaroni and cheese, and an Impossible Meatball sub sandwich, soon available at Disney parks Sure hope Mickey remembers to serve it on a vegan bun. Easy to do. Otherwise, they're leaving a large potential market untapped (or misinformed/misled). vegan veganism dairyfree noHoney noEgg NotReinventingTheWheel ReadilyAvailable YouCanDoIt Another good reason to avoid Disney parks.



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