12 Best Fast Food Stocks to Buy Now

5. Shake Shack Inc. (NYSE:SHAK)

Number of Hedge Fund Holders: 43

Shake Shack Inc. (NYSE:SHAK) operates a roadside burger business. It offers a standard American menu that includes quality burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, and wine. The company uses a whole-muscle combination of all-natural Angus beef that is devoid of hormones and antibiotics. The beef is ground fresh every day, cooked to order, and served on a potato bun that has not been genetically modified. Its menu consists of a variety of traditional American foods and drinks. It is ranked fifth on our list of the Best Food Stocks.

In its most recent fourth-quarter earnings report, Shake Shack Inc. (NYSE:SHAK) posted adjusted earnings per share (EPS) of $0.26, $0.10 more than analysts had predicted. The company’s quarterly revenue of $328.7 million was marginally higher than the $325.3 million average expectation. The revenue jumped by about 15% YoY. Sales at company-owned and franchised outlets combined came to $500.7 million, which was roughly $1.5 million less than anticipated. The stock of the firm jumped more than 9% on February 20 after the earnings announcement.

Truist maintained its Buy recommendation on Shake Shack Inc. (NYSE:SHAK) shares and increased its price objective from $143 to $154. In a research note, the analyst informs investors of the company’s strong Q1 comps expectations, Q4 earnings beat, and higher FY25 adjusted EBITDA guidance. The company notes that its excellent positioning is shown by the company’s sustained same-store sales growth into Q1 despite weather and wildfire headwinds, a mismatched promotion, and an uncertain macroeconomic backdrop.