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Shake Shack Stock Price Rallies 22% on Quarterly Sales Jump

Nigel Firth
Nigel Frith trader
Updated 5 Nov 2021

Shake Shack (NYSE: SHAK) stock caused a flurry in the markets this morning – with investors reacting incredibly well to the company’s 2021 Q3 results – which support future plans for growth and expanding business exposure. 

The fast-food chain has had a mixed year but generally has been stuck in the firm grip of the bears, until today. Following today’s Q3 report, it appears the fast-food chain surprised the markets and analysts alike with improved revenue data from the previous quarter. 

In fact, Shake Shack cut its third-quarter losses by more than half to $2.17M, thanks to a substantial 48% jump in overall revenue – rising from $130.4M in Q3 2021 to $193.89M. Although internal targets were narrowly missed, it was clearly enough to welcome the bulls back in the early hours of Friday trading.

CEO of Shake Shack, Randy Garutti refers to the hurdles ahead:

“We saw benefits to our urban Shacks as more of our guests returned to offices, events, commuting and tourism-based locations…Sales strength aside, we are not immune to the margin pressures that are still being felt across our industry. Inflation in commodity prices and investments across team members are pressuring our margins”

Shake shack has a lot on its plate in order to maintain market growth; in an industry threatened with inflation and inventory bottlenecks, it’s a difficult landscape to navigate. However, with pre-Covid tourism patterns returning, Shake Shack remains a firm competitor in the fast-food market. 

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Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.