SHAK “Shakes” It Up with Chicken Shack


SHAK (NYSE: SHAK) “Shakes” It Up With Chicken Shack

If you love Shake Shack (NYSE:SHAK) and everything on its current menu then you may just love a new and modified Shake Shack which could show up on a corner near you called “Chicken Shack.” Shares of Shake Shack closed at new highs yesterday at $89.87, or up $7.02 after speculation that they might be creating a subsidiary Shack called “Chicken Shack,” which would include chicken prepared in various ways. Shake Shack was a recent IPO this year opening at $21.00 and has quickly risen nearly 400%; an outperforming IPO in the food industry. While it is not known yet if this is fact or fiction, reports are that Shake Shack recently did file for a trademark utilizing the name “Chicken Shack” indicating the possibility that they will expand with a new operation that may specialize in chicken and shakes, or combine its original menu and simply add chicken.

Shake Shack originated in New York City as a food cart inside Madison Square Park in 2000 specializing in hamburgers then later adding hot dogs, fries and milkshakes. The milkshake was its initial main draw for customers but the hamburgers made from Angus beef have helped continue to drive the popularity of this company’s menu. As of late, they have now been offering wine and some bottled beers to the beverage section of the menu.
As of yesterday’s closing price, SHAK has a market cap of over 3 billion dollars. To put that into perspective, SHAK now has a higher value than such established names like JC Penney (NYSE: JCP), Sotheby’s (NYSE:BID), and Deckers (NYSE:DECK).



While it is no secret that there are many fast food establishments now available for Americans to find a meal, some may pose a bigger threat than others to Shake Shack’s ability to continue building upon its stock price. One such competitor is a restaurant owned by Yum Brands called Super Chix, and the other more well-established chain being Chick-fil-A. As chicken and egg prices continue to rise over the bird-flu issue in America, we will have to revisit this developing story in the near future to see if economic factors influence their popularity and ultimately their bottom line.

Explosive Chart

Please see below the weekly price chart of Shake Shack showing its price performance since it debuted in early February of 2015.