In this segment of the Motley Fool Money podcast, host Chris Hill, Million Dollar Portfolio's Jason Moser, Jim Mueller of Stock Advisor and Motley Fool Options, and Total Income's Ron Gross discuss Shake Shack's (NYSE:SHAK) latest entry in the fast-food limited-time menu-addition wars: the Love Shack Shake, a strawberry-blonde milkshake with glitter sprinkles, due in stores in February.
A full transcript follows the video.
This video was recorded on Jan. 26, 2018.
Chris Hill: Shake Shack has teamed up with The B-52s to create a limited-edition beverage -- yes, it's the Love Shack Shake, a strawberry blonde milkshake topped with whipped cream and glitter sprinkles. It's available in February. I'm rooting for this to succeed.
Jim Mueller: I'm not.
Hill: You're not?
Mueller: I can't stand that song. I'm sorry.
Ron Gross: [laughs] I could do without the glitter sprinkles, but it sounds delicious.
Jason Moser: Well, clearly, we know why Starbucks' guidance going forward is now so tepid. It's the Shake Shack competition.
Hill: I mean, all kidding aside -- and I'm going to give credit to McDonald's, whether they deserve it or not, but what McDonald's did for years with the McRib, coming out with this limited-edition thing once a year, it boosted same-store sales even if it was just for that one month -- I kind of like this strategy, and that's why I'm rooting for this to work. Isn't this kind of a no-brainer, particularly if you're a publicly traded restaurant company?
Gross: Yeah, I think a lot of restaurants do this limited-time availability-type product, whether it's Starbucks with the unicorn drink, or Dunkin' Donuts does it from time to time. I have no problem with it as long as it tastes good and is not too gimmicky.
Moser: With social media today, the word-of-mouth advertising just flies.
Mueller: And it's a good way to test a potential large companywide menu rollout item.
Hill: Let's go to our man behind the glass, Steve Broido. Steve, come February, can I interest you in a Love Shack Shake?
Steve Broido: No, thank you.
Mueller: My man.
Hill: Just out of curiosity, is it the song or is it the glitter sprinkles?
Broido: I've never been to a Shake Shack, and I've never wanted to go to a Shake Shack, so maybe that's my problem.
Gross: I have one at a couple of miles from my house. It's the opposite direction that I'm worried about, the Amazon campus opening up. So the family and I will be going soon.