Hamburger restaurant chain Shake Shack (SHAK) is trying to attract more customers by offering premium menu items at discount prices.
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Shake Shack found success earlier this year with its $10 Dubai Chocolate Pistachio Shake. Now the company is launching a series of new premium menu items, this time featuring French onion soup flavors. The burger chain said it is launching a new “French Onion Menu” that consists of a French Onion Soup Burger.
The newest burger innovation is a made-to-order quarter-pound beef patty topped with Gruyere cheese, caramelized onions, crispy sweet onions and roasted garlic Parmesan aioli on a toasted bun. It also includes the chain’s first-ever beer-battered onion rings and Parmesan garlic fries. The meal is priced at $10.99.
Fine Dining?
The focus on premium menu items at comparatively affordable prices comes as quick-service restaurant chains such as Shake Shack battle for consumer dollars in a slowing economy. In announcing the new French Onion Soup Burger, Shake Shack referred to the meal as the “democratization of fine dining.”
In a news release, Shake Shack added, “We are really bringing great value to the marketplace by delivering burgers that you’re going to have to pay $25 for in a local burger shop, and we’re selling them for $10 or $11.”
In its most recent quarterly print, Shake Shack beat Wall Street forecasts on both the top and bottom lines, with revenue growing 13% to $356.5 million from a year earlier. However, same-store sales were up less than 2% from the previous year, which was weaker than expected. SHAK stock is down 25% this year.
Is SHAK Stock a Buy?
The stock of Shake Shack has a consensus Hold rating among 17 Wall Street analysts. That rating is based on five Buy, 10 Hold, and two Sell recommendations issued in the last three months. The average SHAK price target of $134.73 implies 38.78% upside from current levels.
