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Actionable news in SHAK: SHAKE SHACK Inc,

Shake Shack just destroyed two big worries about its business

Shake Shack (SHAK) rose 5% on Friday on the heels of a strong first quarter earnings report. Comparable store sales rose 9.9%, driven by 7.3% increase in traffic, and a 2.6% increase in price and order mix.

Importantly, the red-hot burger chain proved its naysayers wrong on two big challenges. Those skeptics claimed Shake Shack wouldn’t have appeal beyond the Northeast and that it couldn’t expand its menu beyond just burgers.

Yes, the appetite for Shake Shack goes beyond the Northeast

When Shake Shake announced plans to expand to California, questions arose about the company’s ability to compete with the popular In-N-Out chain concept. But based on early reads of the company’s location in West Hollywood, investors don’t have anything to worry about.

“While we generally don't comment on unit-specific data, we are really excited to share that this first California Shack has been one of the strongest openings in our 12-year history,” CEO Randall Garutti said. “We're beyond thrilled and humbled by the passionate response from our...