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Zacks Market Edge Highlights: Shake Shack, Habit Burger, Good Times Restaurants, Red Robin Gourmet Burger and McDonald's

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For Immediate Release

Chicago, IL – September 6, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/321461/burger-stocks-tasty-or-not)

Burger Stocks: Hot or Not?

Welcome to Episode #145 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Ryan McQueeney, editor of the Income Investor podcast host and host of Zacks Free Lunch, the live streaming stock show, to discuss one of Tracey’s favorite topics: the burger stocks.

In 2013-2014, restaurant IPOs were all the rage, especially the burger chains. It seemed like every restaurant group was launching a premium burger concept and some, which were successful in their own regional markets, were testing the IPO market.

After launching as hot IPOs, it’s been tough going for some of the recent chains. These are also changing times for the more established restaurant players as taste change and labor costs rise.

Are any of the burger stocks still hot?

Which should investors and traders be looking at, if any?

Not all the popular burger chains are public companies. Tracey and Ryan discuss several of those including Fatburger, Smashburger, In-and-Out Burger and Texas’ very own Whataburger.

5 Burger Stocks: Tasty or Not?

1.      Shake Shack (SHAK - Free Report) is trying to double its restaurants by 2020. Same-shack-sales, however, are just so-so as they came in up 1.1% in the second quarter. It’s trading with a forward P/E of 96 so investors are paying a high premium for this well-known New York chain.

2.      Habit Burger is a California-based chain that provides more value for the money than some others. Tracey finally got to try this chain after years of talking about doing so. It did not disappoint. However, if you’re a value investor like she is, you’re not going to be pleased with Habit’s valuation. It trades with a forward P/E of 308.

3.      Good Times Restaurants (GTIM - Free Report) is probably the stock you’ve never heard of. It operates Good Times Burgers & Frozen Custard and Bad Daddy restaurants in Colorado and Wyoming. It has a market cap of just $63 million but in the fiscal third quarter, same-store-sales rose 3.8%.

4.      Red Robin Gourmet Burger (RRGB - Free Report) is the sit-down, full service burger chain with over 500 restaurants. It’s been struggling recently as traffic was down 3.2% in the second quarter. It has a more affordable valuation, however, with a forward P/E of 21.2.

5.      McDonald’s (MCD - Free Report) sometimes gets overlooked for its burgers but it keeps innovating with new products. It’s less premium and more fast food but it has an attractive valuation with a forward P/E of 21.

Is growth really going to be there for all these burger chains or will there be winners and losers?

Find out the answer to this and more on this week’s podcast.

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Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast. You can also catch her on Twitter at @TraceyRyniec.

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