10 Best Restaurant Stocks to Buy Today

7. Shake Shack Inc. (NYSE:SHAK)

Number of Hedge Fund Holders: 34

Shake Shack Inc. (NYSE:SHAK), a brand that has evolved into a casual fast-food chain now, started off back in 2004 in New York, U.S.

Shake Shack Inc.’s (NYSE:SHAK) stock has picked on a winning note, post its announcement of results pertaining to the quarter ending 27 March 2024. The company swung things in quite a positive momentum, given that its net income was reported at $2.2 million, whereas it reported a net loss of $1.6 million for the quarter, a year earlier. In addition to this, the company’s revenue was soaring high, as it saw an uptick of 14.7% from $253.28 million a year ago to $290.5 million. Forecasts for the next quarter are in place too, wherein the company is expected to hit somewhere between $309 to $314 million in revenue.

On the other hand, 34 hedge funds have held interest in the stock, worth $695 million – 12 West Capital Management holds the biggest chunk out of it, worth $186.5 million. Analysts are also seeing a bright future for the stock, as they have set the target price of $113.5, in relation to its current price of $85.84, which would translate into an upside potential of the stock being 32.2%.

About the outlook of the company for the remainder of the year, Katie Fogertey, the CFO, spoke the following:

“Our teams are executing on our 2024 strategies to drive better overall guest experience, grow sales, expand restaurant-level profit margins, and lower build costs as we look to grow sales year-on-year by 12% to 15% and adjusted EBITDA by [between] 21% [and] 29% to $160m to $170m.”

Famous astrophysicist Neil deGrasse Tyson talked to Insider Monkey about his 5 favorite stocks back in 2018 and mentioned SHAK among those 5 stocks. SHAK shares returned around 60% since then but underperformed his other picks one of which more than tripled. You can watch our video about Tyson’s 5 favorite stocks here.