Shake Shack (SHAK) Slipped as Results Fell Short of Expectations

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets sustained their upward rally from April’s lows, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for further interest rate cuts from the U.S. Federal Reserve. Small-cap stocks mirrored the rally by extending the momentum in the quarter. The Russell 2000® Growth Index was up 12.19% in the quarter, modestly underperforming the Russell 2000 Value Index’s 12.60% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Small Cap Growth Fund highlighted stocks such as Shake Shack Inc. (NYSE:SHAK). Shake Shack Inc. (NYSE:SHAK) owns, operates, and licenses Shake Shack restaurants. The one-month return of Shake Shack Inc. (NYSE:SHAK) was -2.60%, and its shares lost 19.75% of their value over the last 52 weeks. On October 28, 2025, Shake Shack Inc. (NYSE:SHAK) stock closed at $91.18 per share, with a market capitalization of $3.892 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Shake Shack Inc. (NYSE:SHAK) in its third quarter 2025 investor letter:

“Shake Shack Inc. (NYSE:SHAK) is a fast-casual restaurant chain offering burgers, hot dogs, crinkle-cut fries, chicken dishes, milkshakes, and other beverages. The stock pulled back following quarterly results that did not meet elevated expectations. Results were strong and ahead of published consensus, but investor expectations were geared for more upside. Slower overall traffic trends in the fast-casual dining space further weighed on the company’s stock price.”

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

Shake Shack Inc. (NYSE:SHAK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 34 hedge fund portfolios held Shake Shack Inc. (NYSE:SHAK) at the end of the second quarter, compared to 39 in the previous quarter. Shake Shack Inc. (NYSE:SHAK) reported total revenue of $356.5 million in the second quarter of 2025, exceeding its guidance range. While we acknowledge the risk and potential of Shake Shack Inc. (NYSE:SHAK) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Shake Shack Inc. (NYSE:SHAK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Shake Shack Inc. (NYSE:SHAK) and shared the list of trending stocks moving these days. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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