SHAK - Gross Mispricing In The Burger Space: Comparing Habit Burger Grill And Shake Shack
Although we recently removed our lowest possible rating from Danny Meyer's New York-based burger chain Shake Shack (SHAK), we continue to believe the stock's valuation makes little sense. About nine months ago we initiated a short position at $58 per share, which worked out well. However, when the shares hit $45 around year-end, we moved to a neutral "2" rating. Make no mistake, however, we do not find SHAK compelling in the 40's, but rather, it has corrected from extreme nosebleed territory:
Data by YChartsRather than focus on SHAK's sky-high valuation