1. 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, Shake Shack Inc. (NYSE:SHAK) ranks first on our list of top 10 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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