• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

"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.”

*  *  *  *  *  *  *

Burger Bubble: Shake Shack Is One of the Most Overvalued Stocks Out There | $SHAK - zen

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!

Highlights below.

Burger Bubble: Shake Shack Is One of the Most Overvalued Stocks Out There | $SHAK - zen 99

Burger Bubble: Shake Shack Is One of the Most Overvalued Stocks Out There | $SHAK - zen 1

Burger Bubble: Shake Shack Is One of the Most Overvalued Stocks Out There | $SHAK - zen 2

Burger Bubble: Shake Shack Is One of the Most Overvalued Stocks Out There | $SHAK - zen 3

BOTTOM LINE? "It can’t defy gravity for much longer," Penney says.

If you're an institutional investor and would like more information on Penney's research ping sales@hedgeye.com.