11 Best Fast Food Stocks To Invest In Right Now

4. Shake Shack Inc. (NYSE:SHAK)

Number of Hedge Fund Holders: 31

Shake Shack Inc. (NYSE:SHAK) is a popular American fast-food chain that started as a hot dog cart at Madison Square Garden in the early 2000s. Over the years it has expanded to over 550 locations across the globe and is known for its beef burgers, crispy chicken, milkshakes, and more. It is one of the best fast food stocks to invest in right now.

The stock has surged by over 9% since the announcement of financial results for Q3 on October 30, as Shake Shack Inc. (NYSE:SHAK) beat earnings estimates. Total revenue for the quarter climbed 14.7% from last year to reach $316.9 million, while system-wide sales were posted at $495.1 million, up 12.8% year-over-year. Same-Shack sales growth was recorded at 4.4%, making this the 15th successive quarter of positive growth.

CEO Rob Lynch credited the success in Q3 to the company’s ‘continuous culinary innovation’. Some examples of this include Shake Shack Inc. (NYSE:SHAK) launching its summer barbecue menu for the Memorial Day weekend and then later, in September, bringing back the Black Truffle Burger and Chicken Sundays, both of which are extremely popular among consumers. These differentiated culinary experiences help the fast food chain stand out in today’s fierce value wars and also aid in spreading brand awareness.

Shake Shack Inc. (NYSE:SHAK) has a significant number of sales-driving initiatives and campaigns that it plans on leveraging ahead. There are three that stand out, starting with its strategic production innovation calendar at first. The second is the launch of its loyalty platform, and lastly the operational enhancement plans in the pipeline to enhance customer experience, improve throughput, and lower service times.

Lynch spoke to CNBC after the earnings beat and vowed to expand Shake Shack Inc. (NYSE:SHAK) both domestically and internationally, and noted that there were still plenty of markets the restaurant chain could tap into. The company opened 17 new restaurants in the third quarter, of which eight were domestic and company-owned. It is on track for 75 new openings for the full year and plans for 80-85 new units in 2025.

Looking ahead, Shake Shack Inc. (NYSE:SHAK) anticipates Q4 revenue in the range of $322.6 million to $327 million, representing a projected uptick of 12.7% to 14.2% from last year. Full-year sales are expected at $1.25 billion, up 15% year-over-year.