“Ever heard of Boston Chicken, Snapple, Krispy Kreme? Guess what, THE VERY SAME THING HAPPENED TO THEM: the mo-mo boys ran them up to the sky, relative to actual hard-dollar value, then they missed earnings or revenues targets, then ... blooey.”
I’d short Five Guys tomorrow, but they’re private. They’re saturating markets, now going toe-to-toe with In-and-Out and think that their overpriced burgers will somehow win. They’d have their hands full just keeping up with McDonald’s, but no - they think they pull this stunt off. They remind me very much of People’s Express.
People’ Express, like Freddy Laker’s airline but to a lesser extent, also took it in the chops because of the gyrations of the forex mkt in 1985-87. Five Guys? No idea. They were not in my home town when I moved out of the US. I’ve no reason to think you’re wrong, though — premium-priced fast food is NOT a long-term winning business plan (as our fiends [no typo] at Chipotle are just about to learn, the hard way).