I didn't really like In-n-out when I was young.
and In-n-out isn't really a premium burger, it's seasoning that make beef taste good.
but ss beef is premium beef, no need for flavor enhancement.
shake shack will be a huge success in LA.
LA is so huge, it can accomodate100 SSs
cmg is valued at 10 mil /restaurant last year. so, 200 x 10mil is 2 billion. but, shak's rev. is much higher than cmg per unit. so, 2 billion isn't so outrageous. besides, it will grow faster than cmg for next 10 years.
cmg burrito price is $7~8. add chips and drink... you are looking at $12.. add guac.. $14 and people still line up for $8 burrito.
cmg burrito is mediocre in taste and all different depending on server's moods
shak is pricey, which means higher margin.
shak's burger is one of the best in the industry and better than sit-down restaurants.
burgers are american staple...
shak is targeting high foot traffic locations.. mo people, mo money
shak has high brand recognition all over the world - think China!
and, unlike kkd, people do not get tired of eating hamburgers.
shak's PE will stay above 30~50 for long long time due to continuing growth potential.
dont be value investor with shak.