The Next Chipotle
Like the industry, Shake Shack reported weak comp sales. The company though grew Q4 revenues by 32%. Most importantly, restaurant operating margins were an incredible 26.6% for 2017. The numbers are very close to where Chipotle peaked.
The biggest concern remains the NYC concentration. Those stores account for only 23% of the comp units and a rather large 41% of sales. The concern is that the stores outside of NYC won't garner the same sales volumes.
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