Shake Shack Stock Rockets on Strong Earnings and Demand Upsurge
Shake Shack's stock soared 23% after reporting strong Q4 2023 financial results, with a 1.4% increase in year-over-year restaurant traffic and a 20% restaurant-level operating margin. Despite positive results, an increasing share count dilutes shareholder profits, leading to concerns about the stock's valuation. The company expects 11-15% top-line growth in fiscal 2024, driven by new restaurant openings. However, some analysts caution that the stock may be overvalued, suggesting investors consider taking profits as shares hit 52-week highs.