We recently published a list of Top 10 Stocks to Buy According to 12 West Capital Management. In this article, we are going to take a look at where Shake Shack Inc. (NYSE:SHAK) stands against other top stocks to buy according to 12 West Capital Management.
Joel Ramin founded 12 West Capital Management in August 2011, establishing it as a New York-based hedge fund specializing in global investments across equities, equity-related instruments, and credit securities. Prior to launching 12 West, Ramin worked as an analyst at Bridger Capital, gaining experience in both long equity positions and short-selling strategies. Currently, he serves as the firm’s Managing Member and Portfolio Manager, overseeing investment decisions and advisory services for institutional investors in the United States.
12 West Capital Management focuses on providing tailored investment management solutions, leveraging a research-driven approach to identify opportunities across various markets. The firm actively engages in both long-term and short-term investments, aiming to maximize returns through strategic asset allocation and risk management. Its expertise spans multiple asset classes, allowing it to adapt to changing market conditions while delivering value to its clients.
Joel Ramin holds a degree from the McIntire School of Commerce, where he completed his undergraduate studies in finance in 2000. His background in finance and investment, combined with his experience at Bridger Capital, has shaped his approach to portfolio management at 12 West Capital. Under his leadership, the firm has built a reputation for its disciplined investment strategies and commitment to generating long-term growth for its investors.
According to its most recent 13F filing for the fourth quarter of 2024, 12 West Capital Management reported nearly $954.6 million in managed 13F securities, with its top 10 holdings accounting for a hefty 90.75% of its portfolio.
Our Methodology
The stocks discussed below were picked from 12 West Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A cook in a busy kitchen preparing a delicious cooking of burgers and fries.
Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders as of Q4: 43
12 West Capital Management’s Equity Stake: $228.98 Million
Shake Shack Inc. (NYSE:SHAK) is a fast-casual restaurant chain based in New York City, known for its burgers, hot dogs, and frozen custard. It originated as a hot dog cart in Madison Square Park in 2001 and rapidly gained popularity, eventually expanding into a full-fledged restaurant. As one of the fastest-growing food chains in the country, Shake Shack went public in late 2014, pricing its initial public offering at $21 per share on January 29, 2015. Over the years, the company has significantly expanded its footprint by increasing its number of company-owned and franchised locations while maintaining strong brand recognition.
Shake Shack Inc. (NYSE:SHAK) recently reported its fourth-quarter earnings, posting adjusted earnings per share (EPS) of $0.26, surpassing analyst expectations of $0.16 by $0.10. The company generated $328.7 million in revenue for the quarter, slightly exceeding the consensus estimate of $325.3 million. Year-over-year, revenue grew by approximately 15%. Systemwide sales across both company-owned and franchised locations totaled $500.7 million, falling short of projections by about $1.5 million. Following the earnings report, Shake Shack Inc. (NYSE:SHAK)’s stock surged more than 9% on February 20. Despite a 9.58% decline over the past three months, the stock remains up by 16.08% over the last 12 months.
In its shareholder letter, the company highlighted its substantial growth, noting that it has expanded from 31 company-owned locations in 2015 to nearly 330 today. Shake Shack Inc. (NYSE:SHAK) has now revised its long-term expansion goal, aiming for 1,500 company-owned restaurants, significantly higher than its previous target of 450. For the first quarter of 2025, the company projects revenue between $326.5 million and $330.9 million, slightly below the analyst consensus of $333.08 million. Its 2025 outlook includes revenue estimates ranging from $1.45 billion to $1.48 billion, with projected net income between $45 million and $60 million for the year, figures that align closely with market expectations. As investor confidence remains strong, the company’s stock has gained approximately 25% over the past year, reflecting its continued growth trajectory.
Overall, SHAK ranks 1st on our list of top stocks to buy according to 12 West Capital Management. While we acknowledge the potential for SHAK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHAK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
