Shake Shack Shares Jump Sharply in Second-Straight Session

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By Kim Khan – Shake Shack (NYSE:) rallied again Wednesday as enthusiasm over its presentation at the ICR Conference for investors continued.

Goldman Sachs (NYSE:), which reportedly shed its stake in Uber (NYSE:), is still hot on Shake Shack’s burgers, according to a note from analyst Katherine Fogertey out today.

Shake Shack (NYSE:) rose 8% in afternoon trading.

“(W)e walked away from their presentation, with more comfort around the potential for menu innovation (return of the Hot Chicken Sandwich, and new hot chicken nuggets, as well as vegetarian burgers) to drive better than expected comps in 2020,” Fogerty wrote.

She was also bullish on the prospects of the chain’s delivery partnership with GrubHub (NYSE:), noting only 40% of its restaurants have fully migrated to solely GrubHub in their point of sale (POS) systems, leaving room for that partnership to keep adding to results.

Goldman reiterated its buy rating on the stock, with its 12-month price target at $115, an 80% rise from Tuesday’s close.

Shake Shack (NYSE:) rose more than 6% Tuesday following its ICR presentation where it also said it was planning to expand, at a measured pace, in China, Singapore and South Korea.

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