Is Shake Shack (SHAK) a Good Investment Option?
Wasatch Global Investors, an investment management firm, released its “Wasatch Small Cap Growth Strategy” third quarter 2023 investor letter. A copy of the same can be downloaded here. Stocks fell broadly in the quarter as investors worried about the consequences of rising interest rates and a possible recession. During the quarter, the strategy declined but surpassed its benchmark, the Russell 2000 Growth Index, which fell -7.32% and the broader Russell 2000 Index lost -5.13%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Wasatch Small Cap Growth Strategy highlighted stocks like Shake Shack Inc. (NYSE:SHAK) in the third quarter 2023 investor letter. Headquartered in New York, New York, Shake Shack Inc. (NYSE:SHAK) owns and operates Shake Shack restaurants. On December 21, 2023, Shake Shack Inc. (NYSE:SHAK) stock closed at $73.74 per share. One-month return of Shake Shack Inc. (NYSE:SHAK) was 18.34%, and its shares gained 64.05% of their value over the last 52 weeks. Shake Shack Inc. (NYSE:SHAK) has a market capitalization of $3.119 billion.
Wasatch Small Cap Growth Strategy made the following comment about Shake Shack Inc. (NYSE:SHAK) in its Q3 2023 investor letter:
"Among our buys during the third quarter, we added Shake Shack Inc. (NYSE:SHAK), a company we’ve owned in the past. Shake Shack is a U.S. and international operator of fast-casual restaurants focused on a range of American classics like burgers, crinkle-cut fries, shakes, beer and wine. We’re impressed with its business model and well-established brand, which continue to inspire a loyal following. The company and the stock stumbled during the Covid-19 pandemic and were slow to recover. However, we think management has finally righted the ship. And Shake Shack now seems poised to resume its growth trajectory."
A chef holding up a newly created dish, showcasing the creativity of the restaurant's menu offerings.
Shake Shack Inc. (NYSE:SHAK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Shake Shack Inc. (NYSE:SHAK) at the end of third quarter which was 24 in the previous quarter.
We discussed Shake Shack Inc. (NYSE:SHAK) in another article and shared the list of top most valuable restaurant companies in the world. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
