Franchising and licensing: Two powerful ways to grow your business in any econom

Question

Franchising and licensing: Two powerful ways to grow your business in any economy (4th ed.)

Chapter 13 – Capital Formation Strategies

In January 2015 Shake Shack became a publicly traded company.   Until then, Shake Shack had been a small regional burger chain in the northeastern U.S. – primarily New York City.

Read the article at the link below and reflect concerning growth issues and how to approach growth in a systematic way.

Do you think Shake Shack made a wise decision based on the information it had when the company decided to move into California (now it is known it was a good decision).

With one success, do you think the company will be able to compete with In-N-Out and the other burger chains already established and the new ones that have opened up recently like Smash Burger?

With the stock down considerably from it post IPO pricing, how do you view the overall success potential and long term potential for investing in this company?

http://finance.yahoo.com/news/shake-shack-first-quarter-refutes-bear-argument-183034691.html

Explanation / Answer

It seems quite apparent with the success of California store, that Shake shack is not going to remain a shop known for only burger, there major element of the success in California was there intention to divers product portfolio, launch of chick n sack has been very successful and they will be diversing their product folio even further, riding on the success in California store the ceo annaounced for mane more stores to be opened in California, so this is a positive signal about the company expansion and its future growth. So with presence in California they will no more be a store for north east USA only, hence they penetrating into new market, which will bring more footfalls, more customer, that is definitely going to add a positive response into company return, hence seeing the future as told by its ceo and its expansion plan, its diversification of product offerings and its recent success in California , it can be said that you can invest into this stock. But the thing is for reaping the benefit out of this investment you have to be show bit patience and you have to invest with an intention of keeping your money for long term basis not with in a year, you should sell. It is wise decision to invest in this stock.

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