Shake Shack Inc. (SHAK) Is An Excellent Firm Struggling With Beef Prices, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About As He Warned About “Have-Not” Stocks. Shake Shack Inc. (NYSE:SHAK) is one of the stocks Jim Cramer recently discussed.

Shake Shack Inc. (NYSE:SHAK) is an American fast food chain. Its shares dipped by a stunning 20.6% following its second quarter earnings despite the fact that the firm’s $356 million in revenue and $0.44 in EPS beat analyst estimates of $354 million and $0.38. Cramer attributed the dip to the current crisis in the US beef industry:

“[I’m trying to keep things balanced here and get the consumer weaker the enterprise stronger. Shake Shack, which is a marvellous company, Rob Lynch terrific operation. The stock is down 23 points. Now why is that? One single line, ‘beef prices now up low teens’ the herd is wrong, you’re seeing anyone who is connected to the beef industry really struggling. It’s worth it to point out that there is a price point that people won’t pay for beef. And it looks like Shake Shack, an excellent firm is starting to bump up against that.”

Here are his comments about Shake Shack Inc. (NYSE:SHAK) made later during the day on Mad Money:

“Or what about Shake Shack? Terrific company with a stock that took a real header today, down 14%. As I go over the conference call, I came across this fly in the ointment, ‘The majority of the commodity situation is in beef, and obviously we sell a lot of beef.’ Boom.”

While we acknowledge the potential of SHAK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.