Do You Believe in the Growth Potential of Shake Shack (SHAK)?

1 hour ago 1

Soumya Eswaran

Mon, December 15, 2025 astatine 8:20 AM CST 3 min read

Wasatch Global Investors, an plus absorption company, released its third-quarter 2025 “Wasatch Small Cap Growth Strategy” capitalist letter. A transcript of the missive tin beryllium downloaded here. US small-cap equities rallied powerfully successful the 3rd quarter. The Fed Reserve’s involvement complaint chopped supported the rally. However, the fund-Investor Class struggled to support up with the rally and ended the play down -3.17% vs. 12.19% summation for the Russell 2000 Growth Index. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Wasatch Small Cap Growth Strategy highlighted stocks specified arsenic Shake Shack Inc. (NYSE:SHAK). Shake Shack Inc. (NYSE:SHAK) owns, operates, and licenses Shake Shack restaurants. The one-month instrumentality of Shake Shack Inc. (NYSE:SHAK) was -4.53%, and its shares mislaid 36.80% of their worth implicit the past 52 weeks. On December 12, 2025, Shake Shack Inc. (NYSE:SHAK) banal closed astatine $83.16 per share, with a marketplace capitalization of $3.55 billion.

Wasatch Small Cap Growth Strategy stated the pursuing regarding Shake Shack Inc. (NYSE:SHAK) successful its 3rd 4th 2025 capitalist letter:

"Shake Shack Inc. (NYSE:SHAK) besides detracted. The fast-casual edifice concatenation is champion known for its premium burgers and milkshakes. In our view, fundamentals for the institution stay strong. But the stocks of astir edifice companies were down successful the quarter. We judge this is owed to interest astir imaginable weakness successful user spending. However, we proceed to similar the company. Shake Shack’s higher-end burger conception appears to beryllium resonating with consumers, and we similar the runway for maturation arsenic it expands its nationalist footprint. Unit economics associated with caller restaurants are rather attractive, successful our view, and we enactment management’s enlargement plans."

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Shake Shack Inc. (NYSE:SHAK) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge money portfolios held Shake Shack Inc. (NYSE:SHAK) astatine the extremity of the 3rd quarter, compared to 34 successful the erstwhile quarter. Shake Shack Inc. (NYSE:SHAK) reported full gross of $367.4 cardinal successful the 3rd 4th of 2025, marking 15.9% year-over-year increase. While we admit the imaginable of Shake Shack Inc. (NYSE:SHAK) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.