Josh Brown on Bearish Call on Shake Shack(SHAK): 'This Type of Thing Come and Go'

We recently published 10 Trending Stocks Moving These Days. Shake Shack Inc (NYSE:SHAK) is one of the trending stocks moving these days.

Josh Brown recently commented on JPMorgan adding fast casual dining chain Shake Shack Inc (NYSE:SHAK) to its top short ideas list. The analyst disagreed with the call and said he’s been a long-term investor in the stock:

“I’m in the name for almost 11 years since they came public. I’d point out what they’re saying is actually true. The consumer is being pressured right now. And you’re not just seeing that at Shake Shack—Cava is struggling, Sweetgreen is struggling, Chipotle looks terrible. So, this is a sector-wide phenomenon. This type of thing does come and go if you’re a long-term investor in the QSR space or the premium casual, whatever they call it these days. This is just something that you’re going to live through. What happens, though, is that eventually they price too much of that in, and then these companies start to surprise to the upside.”

The other questions they’re raising are about Shake Shack Inc (NYSE:SHAK) expansion plans. The new CEO wants to go to 1,500 units. There’s some questions about whether or not that will lead to cannibalization, which I think is absurd given the size of the world. I think 1,500 Shacks will be okay. So, I don’t disagree short-term that there is consumer spending concern. I do disagree with the idea of getting short a stock that’s already in a 30% drawdown, where enough people already are worried about it that they could have upside.”

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

“Although Consumer Staples were challenged, our Consumer Discretionary investments stood out in terms of positive performance. Although tariff fears initially hurt some of our discretionary stocks, especially those with global supply chains, our best performing stock in aggregate was Shake Shack Inc. (NYSE:SHAK). SHAK’s Q1 results outpaced restaurant giants Chipotle (CMG) and McDonalds (MCD). Recent menu innovations, marketing investments, and operating initiatives are driving greater returns on investments, and the company has a long runway to grow units and compound those returns. Even though we’ve taken some profits, we consider this a core investment position and are excited about the long term prospects for the shares.”

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