Stock Story -
What Happened: Shares of fast-food chain Shake Shack (NYSE:SHAK) jumped 19.4% in the morning session after the company reported second-quarter earnings results. Shake Shack blew past analysts' gross margin expectations. Its revenue and EBITDA also outperformed Wall Street's estimates. The results also benefit from the company's expansion drive, as it launched 12 new company-operated Shacks during the quarter. Overall, this was a really good quarter that should please shareholders.
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What is the market telling us: Shake Shack's shares are quite volatile and over the last year have had 14 moves greater than 5%. But moves this big are very rare even for Shake Shack and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 6 months ago, when the stock gained 26.5% on the news that the company reported fourth-quarter results that beat across the board on all key metrics from sale-store sales to revenue to profits to EPS. FCF even came in higher than expected and was positive rather than the loss projected by Wall Street analysts. Zooming out, this was a fantastic quarter that should have shareholders cheering.
Shake Shack is up 39% since the beginning of the year, and at $101.77 per share it is trading close to its 52-week high of $109.27 from March 2024. Investors who bought $1,000 worth of Shake Shack's shares 5 years ago would now be looking at an investment worth $1,357.
![Shake Shack (SHAK) Stock Trades Up, Here Is Why](https://d68-invdn-com.investing.com/content/pic6d0257686595b6c3203483a5e95a4e56.jpeg)