“Shake Shook!” Wall Street Drives Stock Up 16% After Earnings Smash… Halloween Came Early

Looks like Wall Street said f*&^ it, sold all their shares, and decided to binge-watch the Olympics instead. 

The Dow tanked 512 points, or nearly 1.3%, marking its worst day of the year. At its lows, it dropped 744 points, about 1.8%. The S&P 500 and Nasdaq followed, shedding 1.3% and 2.2%, while the Russell 2000 took a 3.6% dive.

What’s causing this spooky selloff months before Halloween? 

Fresh data sparked recession fears and concerns that the Fed might be too late with rate cuts. Initial jobless claims jumped the most since August 2023, and the ISM manufacturing index hit 46.8%, waving a big "Danger: Economic Sinkhole Ahead" sign. As a result, the 10-year Treasury yield dipped below 4% for the first time since February.

This comes a day after the Fed kept rates at their highest in two decades, with Jerome Powell hinting at a possible September rate cut. The bond market is already hinting we're behind the 8-ball. Chris Rupkey from FWDBONDS summed it up: the market's torn between rate cut hopes and recession fears.

Biggest losers? JPMorgan Chase dropped 2%, and Boeing fell over 5%. On the bright side, Meta's stock rose 5% after better-than-expected results.

Now, everyone’s eyeing Apple’s and Amazon’s earnings to see if the selloff will continue or if we can end the week on a high note.

“Shake Shook!” Wall Street Drives Stock 16%+ After Earnings Smash

Well guys, I’ve been waiting forever to talk about my favorite burger chain and my go-to meal, and today is finally the day. Shake Shack's shares just jumped 16%, after their second-quarter sales were revealed in an earnings report.

Needless to say, Rob Lynch, the new CEO, has been crushing it. This guy's not only speeding up checkout times and making sure your order is spot-on, but he’s also somehow managing to build a super team every year with the 49ers. Okay, just kidding—that's a different Rob Lynch. Our guy is sticking to burgers and fries. Shake Shack’s revenue has climbed to over $316 million, a 16% increase. And here’s the big news: for the first time since 2017, Shake Shack is on track to achieve positive free cash flow for the year.

But this is just the beginning. Because If you know anything about Shake Shack’s story, this place has always prided itself on being the gourmet alternative to typical fast food. Starting with a humble hot dog cart in Madison Square Park in 2004, they’ve grown into a $4 billion empire with over 500 locations worldwide. The secret? High-quality, customizable, made-to-order food that keeps customers coming back.

(Source: Tripadvisor)

Now, Lynch has big plans to expand Shake Shack's drive-thru presence. Currently, they have 30 drive-thru locations, with 12 more on the way this year. The challenge? Balancing speed and quality. McDonald's dominates drive-thrus by keeping things fast, and Shake Shack must find that sweet spot.

(Source: Restaurant Business)

Shake Shack is cranking up the speed by firing up the grills the moment you place your order. They’ve streamlined kitchen operations to cut down on chefs playing bumper cars. And get this, they’ve even switched to pre-cut lettuce. Yes, pre-cut lettuce! Additionally, they’re investing in data operations to optimize stock levels, ensuring they meet demand without waste.

Despite these challenges, Shake Shack’s loyal customers don’t mind waiting a bit longer for their ShackBurger because they know it’s worth it. In my opinion, As long as Shake Shack maintains the quality of their food, investors will keep coming back for more. Shake Shack is up 39% year to date.

Stock.News has positions in Apple, Amazon, McDonald's, and Meta.