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Shake Shack gains after upgrades from Wedbush, Goldman Sachs

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Brian Sozzi and Jared Blikre break down the rally behind Shake Shack trading higher after upgrades from Wedbush and Goldman Sachs.

Video Transcript

BRIAN SOZZI: Jared, I'm looking at Shake Shack. I mean, shares are up about 8% here on the early going. Goldman Sachs analyst Jared Garber out-- or raising his rating from buy to neutral, really saying two things. One, they have a lot of cash. That's always good to see, unlike folks over at Lordstown Motors that is running out of cash. And then, number two, urban recovery. You're starting to see a lot of folks go back into urban areas. That's where Shake Shack has most of those restaurants. Jared and Myles.

JARED BLIKRE: Yeah, well, I'll tell you what. If you want to compare it to ride, they also have revenue. We're talking about Shake Shack here. Goldman, so you're talking about Goldman Sachs. I do have some details from that report. They're saying that they're going to use cash to accelerate store growth and invest in digital technology initiatives and new store designs, including Shack Track drive-through. Also saying that Shack sales recovery is, quote, "more prolonged, given the company's small comp base, only 65% of its total stores." More importantly, strong tethered to its urban and tourist-driven locations. Guys.

MYLES UDLAND: All right, there you go, Shake Shack shares on the move this morning, up about 8%, bringing the stock into the green for the year.