Image Source: Shake Shack. 

Shake Shack Inc. (SHAK 0.33%) shares were looking overcooked last month as the better-burger slinger coughed up 12% of its value according to data from S&P Global Market Intelligence. The high-priced stock sold off after reporting second-quarter earnings that included cooling same-store sales growth.

SHAK Chart

SHAK data by YCharts.

So what

After fluctuating with the results from other restaurants in the first week of the month, Shake Shack shares took a dive on Aug. 11, falling 7% after it reported earnings.

Under normal standards, it delivered a solid quarter, but this is a company with a P/E ratio pushing triple digits, and investors have come to expect perfection. The market was disappointed that comparable sales growth slowed from 9.9% in the first quarter to a more mortal 4.5% clip, though that came as murmurs of a "restaurant recession" swept the industry with nearly every fast food chain posting disappointing comps last quarter.

Aside from same-store sales, there was really nothing to complain about as earnings per share of $0.14 topped estimates by a penny and the company lifted guidance for the year on revenue and store openings.

Now what

The company plans to open 18 domestic company-operated stores this year, up from an earlier estimate of 16, and expects to add at least 18 stores a year from here on. It also boosted its full-year revenue forecast from $245 million to $249 million up to a range of $253 million to $256 million, equivalent to approximately a 33% increase over last year.

The stock may continue to be challenged over the coming months due to valuation concerns, but the long-term story is very much in tact here. Management is executing almost perfectly, and the acceleration of store openings is a promising sign. As the stock grows into its valuation over the next year or two, I'd expect shares to steadily climb higher.