Here's What Boosted Shake Shack (SHAK) in Q2

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as Shake Shack Inc. (NYSE:SHAK). Shake Shack Inc. (NYSE:SHAK) owns, operates, and licenses Shake Shack restaurants. The one-month return of Shake Shack Inc. (NYSE:SHAK) was -22.30%, and its shares lost 3.20% of their value over the last 52 weeks. On August 19, 2025, Shake Shack Inc. (NYSE:SHAK) stock closed at $104.52 per share, with a market capitalization of $4.462 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Shake Shack Inc. (NYSE:SHAK) in its second quarter 2025 investor letter:

"Shake Shack Inc. (NYSE:SHAK) is a fast-casual restaurant chain offering burgers, hot dogs, crinkle-cut fries, chicken dishes, milkshakes, and other beverages. The stock performed well, driven by strong quarterly margin performance and an upward revision to annual margin guidance. In addition, traffic trends showed notable improvement after poor weather dampened traffic during the first quarter."

Shake Shack Inc. (NYSE:SHAK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Shake Shack Inc. (NYSE:SHAK) at the end of the first quarter, which was 43 in the previous quarter. Shake Shack Inc. (NYSE:SHAK) reported total revenue of $356.5 million in the second quarter of 2025, exceeding its guidance range. While we acknowledge the potential of Shake Shack Inc. (NYSE:SHAK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Shake Shack Inc. (NYSE:SHAK) and shared the list of stocks Jim Cramer recently discussed. Shake Shack Inc. (NYSE:SHACK) affected Carillon Eagle Small Cap Growth Fund's last quarter’s performance, but the Fund remained optimistic about the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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