Shake Shack (SHAK) Soars 7.42% on Tariff Delay

Shake Shack (SHAK) surged 7.42% today, marking its third consecutive day of gains, with a total increase of 10.72% over the past three days. The share price rose to its highest level since February 2025, with an intraday gain of 7.62%.

The strategy of buying SHAK shares after they reach a recent high and holding for one week resulted in a 259.44% return over the past five years, significantly outperforming the benchmark with a 209.99% excess return. However, the strategy had a maximum drawdown of -32.26% and a Sharpe ratio of 1.61, indicating moderate risk and returns.

Shake Shack's stock price experienced a significant surge on May 27, 2025, with a mid-day trading increase of 6.58%, reaching an intraday high of $126.58 before settling at $125.36. This positive market reaction indicates strong investor confidence and optimism surrounding the company's prospects.

One of the key factors contributing to Shake Shack's stock price increase is the delay of the planned 50% tariff on European Union imports, announced on May 27, 2025. This geopolitical development provided relief to companies with substantial business ties to Europe, including Shake Shack. The delay reduced near-term cost pressures and preserved cross-border demand, which likely contributed to the stock price increase.