"The Shake Shack (SHAK) charade is over,” outspoken Hedgeye Restaurants Sector Head Howard Penney wrote last week. “And I mean over and done. It’s just a matter of time.”
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Penney (who has a long and successful track record shorting restaurant stocks and pointing out Market Emperors Wearing No Clothes) took to Twitter recently to reiterate his bear case on SHAK's ballooning stock price.
One point in particular that stands out: Trading at $64 million per store Shake Shack is 5.9x time more expensive than Chipotle's (CMG) ever was!
BOTTOM LINE? "It can’t defy gravity for much longer," Penney says.
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