Doing a quick comparison here.
2018 White Castle vs 2019 Shake Shack.
In 2019 Shake Shack had 335 stores. (85 international)
Thing is, White Castle stays open 24 hrs. so the higher sales come with higher operating costs. Tough to get figures since they're private.
BUT, on the other hand, I'd be willing to bet they own all the land under a majority of their stores. Probably not so much on new locations, but I bet anything they had standing before 1990, they owned outright. Again, hard to get figures, but that makes for a solid asset.
Before this pullback Shake Shack had a marketcap of about $5B, and a price/sales near 8. (crazy)
Who knows, maybe this family doesn't want to sell. Now that I think about it, I bet that Ingram Foundation you always hear on NPR as a sponsor, I bet that's the same family.
Ackman knows/loves the restaurant biz, so this sure seems like a good fit imo. Lots of room for growth.
2018 White Castle vs 2019 Shake Shack.
In 2019 Shake Shack had 335 stores. (85 international)
Thing is, White Castle stays open 24 hrs. so the higher sales come with higher operating costs. Tough to get figures since they're private.
BUT, on the other hand, I'd be willing to bet they own all the land under a majority of their stores. Probably not so much on new locations, but I bet anything they had standing before 1990, they owned outright. Again, hard to get figures, but that makes for a solid asset.
Before this pullback Shake Shack had a marketcap of about $5B, and a price/sales near 8. (crazy)
Who knows, maybe this family doesn't want to sell. Now that I think about it, I bet that Ingram Foundation you always hear on NPR as a sponsor, I bet that's the same family.
Ackman knows/loves the restaurant biz, so this sure seems like a good fit imo. Lots of room for growth.