by winston » Tue Jul 02, 2019 7:49 pm
not vested
A 'BAD TO LESS BAD' RALLY PUSHES THIS RESTAURANT TO A NEW HIGH
Today, we're checking in on the ups and downs of a rapidly growing restaurant chain...
Longtime readers know all about Steve's "bad to less bad" investment strategy. You can make huge gains with cheap, hated assets as the market evens out – or as things simply get "less bad" than before. That's exactly what's happening with this company right now...
Shake Shack (SHAK) is one of the fastest-growing restaurant chains... In 2018, its U.S. sales totaled roughly $468 million – a 27% increase over the previous year. But concerns over slowing foot traffic – along with the sell-off in the broader market – caused SHAK shares to plummet toward the end of last year.
Now, it appears that investors overreacted... In the most recent quarter, Shake Shack reported more than $132 million in sales and comparable sales growth of 3.6%. Both of these metrics crushed analysts' estimates.
And as you can see, that's a big reason why SHAK shares have rebounded this year. The stock is up more than 50% so far in 2019, recently breaking out to a fresh multiyear high. It's more proof of the gains that are possible when things simply get "less bad"...
Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"