Goldman Sachs told investors to avoid Shake Shack shares, citing the risk of opening too many restaurants in the same geographic area. The firm reiterated its sell rating on the company.



"We have previously highlighted ... declining novelty and therefore excitement around unit opens as a risk to new store productivity, and … cannibalization as a growing risk to traffic trends at SHAK, as the company continues to add density in markets outside of N.Y.," analyst Karen Holthouse wrote in a note to clients Wednesday. "We look at the Washington, D.C., market … as a case study that largely confirmed both of these concerns."