Quote:
Originally Posted by ErikLS2
I agree Greg, and as I go there all the time, I will know when the long lines return (if they do) indicating customer confidence is back like Todd said. That will happen before the stock market figures it out I'm sure.
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EXACTLY!!
A perfect example of investing in "what you know". You'll be able to either see the decline or the consumer coming back. You'll also be a judge yourself... just by noting whether or not you still go - how often - and whether or not the food is better or worse etc.
A little "note" on this while I was in Austin this last weekend. I've been wanting to visit a Shake Shack (SHAK) since they went public. The stock has been a typical IPO over hyped flop.... running way up - and then when the hype has settled down - it's come back down to earth and may still be overpriced on a P/E basis etc (it has no E so can't have a P/E).... The burger was very good - and the place was packed at 2PM and still packed at 5PM.... so that location was humming along very nicely. BUT --- Here's the deal that I was reminded of while my group ate. There is a privately owned joint a block away - called Hopdoddy - the consensus of the group (all 20 somethings) was that Hopdoddy had a far better menu and food. So this "market" has about zero barrier to entry... and that market is rather fickle and can shift (in these small - relative to something like McDonalds etc) quickly. But the winner is often the guy that can grow and manage that growth vs the actual "winner" of the food war. So who knows.