Bank reports says Shake Shack won’t be a big hit outside of Manhattan

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Union Station Shake ShackSeptember 2015- A report this week by banking firm Cowen downgraded Shake Shack (SHAK) stating, among other things, that the fancy burger chain will not sell as well in Mainstream America as it does inside the bubble of Manhattan. We have said the same thing.

Regular Americans can get better, faster, cheaper sandwiches at Wendy’s or Chick-fil-A and will not tolerate the long lines for SHAK. In addition, SHAK burgers are overrated and do not taste good.

There is still plenty of growth for SHAK in penetrating the urban upscale markets. However, perhaps next year, look for growth to sputter, and the shorts to be paid off even more than they already have.

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