Shake Shack looking to expand their presence in South China
Shake Shack’s expansion plans in China are firing up. Shake Shack Inc. and licensee Maxim’s Caterers Limited are proud to announce an expanded partnership, with plans to open a minimum of 15 Shacks in South China by 2030, including locations in Shenzhen, Guangzhou, Fuzhou and Xiamen. "
More About Shake Shack (SHAK)
Shake Shack Inc. was formed on September 23, 2014 as a Delaware corporation. Shake Shack Inc. Class A common stock trades on the New York Stock Exchange under the symbol "SHAK."
Shake Shack is a modern day "roadside" burger stand serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle cut fries, shakes, beer, wine and more. Originally founded in 2001 by Danny Meyer's Union Square Hospitality Group ("USHG"), which owns and operates some of New York City's most acclaimed and popular restaurants—such as Union Square Cafe, Gramercy Tavern and Maialino—to name a few. Shake Shack began as a hot dog cart to support the rejuvenation of New York City's Madison Square Park through its Conservancy's first art installation, "I Taxi." The cart was an instant success, with lines forming daily throughout the summer months over the next three years. In response, the city's Department of Parks and Recreation awarded Shake Shack a contract to create a kiosk to help fund the park's future. In 2004, Shake Shack officially opened. Soon it became a gathering place for locals alike, and a beloved New York City institution, garnering significant media attention, critical acclaim and a passionately-devoted following. Since its inception, Shake Shack has grown rapidly—with 275 Shacks, as of December 25, 2019, in 15 countries and 30 states, as well as the District of Columbia—and we continue to expand globally bringing the Shake Shack experience to new guests around the world
Shake Shack is a modern day "roadside" burger stand serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle cut fries, shakes, beer, wine and more. Originally founded in 2001 by Danny Meyer's Union Square Hospitality Group ("USHG"), which owns and operates some of New York City's most acclaimed and popular restaurants—such as Union Square Cafe, Gramercy Tavern and Maialino—to name a few. Shake Shack began as a hot dog cart to support the rejuvenation of New York City's Madison Square Park through its Conservancy's first art installation, "I Taxi." The cart was an instant success, with lines forming daily throughout the summer months over the next three years. In response, the city's Department of Parks and Recreation awarded Shake Shack a contract to create a kiosk to help fund the park's future. In 2004, Shake Shack officially opened. Soon it became a gathering place for locals alike, and a beloved New York City institution, garnering significant media attention, critical acclaim and a passionately-devoted following. Since its inception, Shake Shack has grown rapidly—with 275 Shacks, as of December 25, 2019, in 15 countries and 30 states, as well as the District of Columbia—and we continue to expand globally bringing the Shake Shack experience to new guests around the world
Quick facts about Shake Shack (SHAK)
- Shake Shack is listed on the New York Stock Exchange under share code ticker: SHAK
- Shake Shack has 7 603 employees
- Shacks located in the Northeast and the New York City metropolitan area comprises approximately 44% of the total domestic company-operated Shacks as of December 25, 2019
- Shake Shack has 275 outlets
- Of the 275 Shake Shack Outlets 90 is outside the USA
- Shake Shack sales for 2019 fiscal year: $574.625 million
- Earnings per share for fiscal 2019: $0.61
- Shares in issue: 34.422 million
- Cash and equivalents on their balance sheet: $37.099 million
- Stockholders equity in Shake Shack: $321.985 million
Press release from Shake Shack (SHAK) announcing their expanded presence in South China
New York’s Beloved Burger, Hot Dog and Frozen Custard Stand Expands in South China, Starting with 2021 Shenzhen Opening
NEW YORK--(BUSINESS WIRE)-- Hello Huanan! Shake Shack’s expansion plans in China are firing up. Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) and licensee Maxim’s Caterers Limited are proud to announce an expanded partnership, with plans to open a minimum of 15 Shacks in South China by 2030, including locations in Shenzhen, Guangzhou, Fuzhou and Xiamen.
Together, Shake Shack and Maxim's Caterers Limited plan to operate 55 Shacks in mainland China by 2030. Maxim’s currently operates Shake Shack locations in Shanghai and Hong Kong, with Beijing and Macau in development with goals to open later in 2020. As a well-respected and proven operator in Asia, Maxim's has more than 60 years of experience in the food, beverage and retail sectors, and its diversified operations include full-service and quick-service restaurants, bakeries and coffee shops.
“We remain humbled by our fans in China and continue to be encouraged by the performance of our Chinese business through this recovery. It’s a great time to deepen our roots in this market,” said Michael Kark, Chief Global Licensing Officer of Shake Shack. ”This is a significant step in our relationship with Maxim’s as we partner to achieve 55 Shacks across mainland China by 2030.”
“Maxim’s partnership with Shake Shack has taken the brand on an exciting journey to Hong Kong in 2018 and Shanghai in 2019, with Beijing and Macau on the horizon,” said Michael Wu, Chairman and Managing Director of Maxim's Caterers Limited. “We remain committed to our common core values of providing inspired food and drink and creating warm community gathering places, and we look forward to bringing our boundless hospitality to more guests across South China in 2021 with our new expansion plans.”
In keeping with its fine dining heritage and commitment to thoughtful ingredient sourcing, quality, and hospitality, the menu will feature Shake Shack’s signature items including the ShackBurger®, Shack-cago Dog®, crinkle-cut fries, beer, wine, lemonade and freshly spun frozen custard ice cream. Aligned with its mission to Stand for Something Good®,Shake Shack will also partner with local producers, purveyors and artists to reflect and support the communities.
About Maxim’s Caterers Limited
Founded in 1956, Maxim’s Caterers Limited (a company incorporated in Hong Kong) is a leading food and beverage company comprised of Chinese, Asian and Western restaurants, quick service restaurants, bakery shops, coffee shops, Japanese chain restaurants and institutional catering, while providing a range of festive products, including the award-winning HONG KONG MX Mooncakes. It is also the licensee of renowned brands including Starbucks Coffee, Genki Sushi and IPPUDO Ramen, The Cheesecake Factory and Shake Shack in various territories. Altogether, it has over 1,700 outlets in Hong Kong and Macau regions, Mainland China, Vietnam, Cambodia, Thailand, Singapore and Malaysia.
NEW YORK--(BUSINESS WIRE)-- Hello Huanan! Shake Shack’s expansion plans in China are firing up. Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) and licensee Maxim’s Caterers Limited are proud to announce an expanded partnership, with plans to open a minimum of 15 Shacks in South China by 2030, including locations in Shenzhen, Guangzhou, Fuzhou and Xiamen.
Together, Shake Shack and Maxim's Caterers Limited plan to operate 55 Shacks in mainland China by 2030. Maxim’s currently operates Shake Shack locations in Shanghai and Hong Kong, with Beijing and Macau in development with goals to open later in 2020. As a well-respected and proven operator in Asia, Maxim's has more than 60 years of experience in the food, beverage and retail sectors, and its diversified operations include full-service and quick-service restaurants, bakeries and coffee shops.
“We remain humbled by our fans in China and continue to be encouraged by the performance of our Chinese business through this recovery. It’s a great time to deepen our roots in this market,” said Michael Kark, Chief Global Licensing Officer of Shake Shack. ”This is a significant step in our relationship with Maxim’s as we partner to achieve 55 Shacks across mainland China by 2030.”
“Maxim’s partnership with Shake Shack has taken the brand on an exciting journey to Hong Kong in 2018 and Shanghai in 2019, with Beijing and Macau on the horizon,” said Michael Wu, Chairman and Managing Director of Maxim's Caterers Limited. “We remain committed to our common core values of providing inspired food and drink and creating warm community gathering places, and we look forward to bringing our boundless hospitality to more guests across South China in 2021 with our new expansion plans.”
In keeping with its fine dining heritage and commitment to thoughtful ingredient sourcing, quality, and hospitality, the menu will feature Shake Shack’s signature items including the ShackBurger®, Shack-cago Dog®, crinkle-cut fries, beer, wine, lemonade and freshly spun frozen custard ice cream. Aligned with its mission to Stand for Something Good®,Shake Shack will also partner with local producers, purveyors and artists to reflect and support the communities.
About Maxim’s Caterers Limited
Founded in 1956, Maxim’s Caterers Limited (a company incorporated in Hong Kong) is a leading food and beverage company comprised of Chinese, Asian and Western restaurants, quick service restaurants, bakery shops, coffee shops, Japanese chain restaurants and institutional catering, while providing a range of festive products, including the award-winning HONG KONG MX Mooncakes. It is also the licensee of renowned brands including Starbucks Coffee, Genki Sushi and IPPUDO Ramen, The Cheesecake Factory and Shake Shack in various territories. Altogether, it has over 1,700 outlets in Hong Kong and Macau regions, Mainland China, Vietnam, Cambodia, Thailand, Singapore and Malaysia.
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Shake Shack (SHAK) stock price history over the last 5 years
The image below shows the stock price history of Shake Shack (SHAK) over the last 5 years. And it's been a very volatile time for SHAK stock. Over the 5 year period the stock of Shake Shack (SHAK) increased by a mere 0.85% over the 5 year period, despite all the ups and downs on the stock price of Shake Shack over the last 5 years.
Our latest stock valuation of Shake Shack (25 February 2020)
So based on Shake Shack's latest earnings report what do we value the stock of Shake Shack at? The group has made a loss during the period under the review, however there are other ways to value companies at instead of just relying on the earnings per share. Our valuation models provides a target price of $47.70 a stock.
We therefore believe the stock of Shake Shack is overvalued at its current price of $47.70. We usually recommend that investors look to enter a stock at least 10% below our target price. Thus a good entry point into the stock of Shake Shack would be at $42.90.
Since the stock of Shake Shack is trading at well above our suggested entry point and target price, we rate the stock of Shake Shake as a sell
We therefore believe the stock of Shake Shack is overvalued at its current price of $47.70. We usually recommend that investors look to enter a stock at least 10% below our target price. Thus a good entry point into the stock of Shake Shack would be at $42.90.
Since the stock of Shake Shack is trading at well above our suggested entry point and target price, we rate the stock of Shake Shake as a sell