NEW YORK (TheStreet) -- Shares of Shake Shack (SHAK) rose 3.46% to $75.05 in morning trading Tuesday after the burger chain reported strong earnings Monday and received an endorsement from Jim Cramer on CNBC's Mad Money.
Cramer said Shake Shack has officially become a cult stock because people will eat there and love the food and buy the stock regardless of the price. On Monday, the company reported stellar comparable-store sales and indicated a pathway to expand to a national franchise from a regional one.
But the real surprise was Shake Shack's earnings beat, which caught short sellers off guard. First-quarter earnings of 4 cents a share surpassed analysts' expectations of a loss of 3 cents a share. Revenue for the period surged 56.3% to $37.8 million, which also beat analysts' expectations of $33.95 million.
Cramer was bullish on the stock on Monday and said he would own it for the long term.
"You have stores being valued at $40 million here, but it is a cult stock like Tesla (TSLA), Netflix (NFLX), and Amazon (AMZN)," Cramer said Tuesday. "So too many people are short it and it can go higher into the lock-up expiration later this summer."