Shake Shack (SHAK) Lunch Reveals Details Behind GrubHub Only Partnership - William Blair

William Blair analyst Sharon Zackfia reiterated an Outperform rating on Shake Shack (NYSE: SHAK) after the company hosted an investor lunch with Shake Shack's management team. The focus of the lunch was the company’s long-term growth potential as it builds from fewer than 170 domestic company-owned stores today but it also offered visibility into the decision to partner solely with Grubhub (NYSE: GRUB).

The company cited 3 main reasons, it decided to solely integrate with Grubhub after two years of tests with multiple providers:

1) the opportunity to access guest data and ultimately get the guest into Shake Shack's channel (the company is working toward the option to order delivery on the Shack app)

2) shorter delivery times and a better customer experience as orders will only fire to Shack's kitchens after GrubHub accepts the order

3) better long-term sustainable economics

For an analyst ratings summary and ratings history on Shake Shack click here. For more ratings news on Shake Shack click here.

Shares of Shake Shack closed at $55.76 yesterday.

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