In an attempt to expand its international presence, Shake Shack Inc. SHAK signed a deal with Korea-based global food company – SPC Group – to open a unit in Seoul in 2016. This will mark the company’s debut in the country. Per the deal, Shake Shack and SPC Group would open at least one restaurant in 2016 and 25 more across Korea through 2025.
New York-based Shake Shack offers all natural, vegetarian-fed Angus beef burgers and homemade custard apart from hot dogs, crinkle cut fries, beer and wine. The company has a cult following around the world, especially health-conscious customers because of the natural ingredients.
The Seoul Shack will offer Shake Shack’s most popular items such as ShackBurger, SmokeShack and Shack-cago Dog. Further, the company would team up with local supplier and producers to offer special menu items popular locally. Thus, Shake Shack would gain from more than 70-year expertise of SPC Group in the industry, which operates around 30 brands and introduced many global brands in South Korea.
Shake Shack has already established itself in the Asian markets including Russia, Turkey and recently in Japan. The hamburger restaurant chain entered the Japanese market this November with its first Tokyo outlet. It is now working on a second restaurant in the region. (Read: Shake Shack is Coming to Tokyo this Winter)
Shake Shack presently sports a Zacks Rank #1 (Strong Buy). Other stocks in the same sector that look attractive at current levels are Dave & Buster's Entertainment, Inc. PLAY, Jack in the Box Inc. JACK and BJ's Restaurants, Inc. BJRI. All these stocks have the same Zacks Rank as Shake Shack.
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