Investors Willing to Pay for Fast-Casual Restaurant Shares

Shake Shack

You'd be hard-pressed to find someone who doesn't think fast casual is here to stay. In this past year, the restaurant industry has risen to feed the growing appetite that millennials and affluent diners have for fast casual. Consumers have become more health-conscious and more keen on being aware of where their foods are sourced from, but are also more selective on how to spend their time -- the busy millennial generation is one of constant motion. They're running around and they want their food to keep up with them.

The fast casual sphere is where those two priorities meet in the middle: healthier than fast food, with service nearly as quick. It's no surprise with this growing popularity that investors are willing to pay just whatever for fast-casual restaurant shares. Will another restaurant crop up and match the success of Chipotle Mexican Grill Inc., which has opened up 1,800 restaurants since it opened its doors in 2005? 

In shares, Shake Shack has shook things up and is the shining performer. Its growth has gone up 260 percent since the end of January. Shake Shack's current stock price values each of its restaurants at $40 million -- four times more than the stock market value of a Chipotle restaurant and 15 times the value of a McDonald's restaurant. Read More

Posted on May 6, 2015 and filed under Fast Casual, Fast Casual Trends.