Shake Shack Inc. (SHAK) Is Struggling Due To Inflation, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Mentioned As He Talked About “Love Lost” Between Microsoft & OpenAI. Shake Shack Inc. (NYSE:SHAK) is one of the stocks Jim Cramer recently discussed.

Shake Shack Inc. (NYSE:SHAK) is a fast food chain whose shares struggled after the firm’s latest earnings report. The stock price was 20.6% lower after the firm’s second-quarter earnings. Shake Shack Inc. (NYSE:SHAK) suffered, as despite beating analyst EPS and revenue estimates, the firm guided lower-than-expected same-store sales. Cramer discussed the Shake Shack Inc. (NYSE:SHAK) earnings and what drove the stock lower:

“Well that’s why I say that, J Powell does have to cut. There’s too many conference calls that really do say, look, our business is really being hurt now. People are just not able to afford the nine dollar burger, I had Shake Shack on the other night, they’re advertising deals for the first time, why? Because they got to come down in price. Everybody has to come down in price and that’s going to hurt eventually to those who want to pass down the tariffs.”

Shake Shack Inc. (SHAK) Is Struggling Due To Inflation, Says Jim Cramer

Here are Cramer’s earlier thoughts about Shake Shack Inc. (NYSE:SHAK):

“During earnings season, when a stock comes in maybe too hot, even a good quarter might not be enough to prevent it from pulling back. Take Shake Shack, iconic burger chain. Last Thursday morning, the company reported a pretty clean top and bottom line beat with its highest restaurant level margins in six years, which is what I care about. Yet some people thought there was a fly in the ointment. Shake’s same-store sales grew at just 1.8%. Analysts were looking for 2.2%. Give me a break.

That’s hardly the end of the world, but given that the stock was up 60% from where it was trading when they reported the previous quarter, clearly expectations were high and there wasn’t much margin for error there. We had to be careful, but that’s why the stock plunged almost 15% on Thursday and fell another 7% on Friday before rebounding more than 3% today.”

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.