Get All Access for $5/mo

Shake Shack Is 100 Times More Successful Than McDonald's on Instagram, Analysts Say Looking at Instagram followers per total sales, the newly public hamburger chain comes out far ahead of larger competitors on social media, according to Goldman Sachs.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Shake Shack is proving that Millennials' propensity to share pictures of their burgers on Instagram can affect the stock market. If this sounds a bit over dramatic, let me explain.

On Tuesday, Wall Street analysts began coverage of fast-casual Shake Shack, nearly a month after the burger chain's promising IPO in late January. Buried within Goldman Sachs's discussion of the brand is one tidbit that shows just how important social media has become in analyzing a company.

Goldman Sachs says that, similar to Chipotle, Shake Shack has a "unique resonance with Millennials," in part due to a strong social-media presence. The burger chain has racked up 155,000 followers on Instagram, in spite of only having 63 locations, half of which are in the U.S. For comparison, McDonald's has more followers -- 491,000 -- but also has way more locations -- 36,000, of which more than 14,000 are in the U.S.

Related: Burgers Beat Out Sandwiches Big Time in 2014

Using Goldman Sachs's measure of followers by system sales (i.e. all outlets' total sales figures) in North America, McDonald's has 11 followers per systems sales, while Shake Shack has a stunning 1,808.

Using the same followers by system sales measurement, Goldman additionally found that Shack Shake is more successful than competitors on Vine -- though Taco Bell is a close second, as both are near the 20 followers per North American system sales mark.

The firm said Shake Shack has additionally driven relevance with Millennials by sourcing "real food" at competitive prices, as well as partnering with local brands and charities. The burger chain needs to work on building recognition and approval outside of the core market of New York City, as the brand is still in early stages of growth in the U.S. and internationally, according to Goldman.

Related: Shake Shack Surges in Trading Debut

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Meta Makes $1 Million Dollar Donation to Donald Trump's Inaugural Fund

Meta CEO Mark Zuckerberg also reportedly gave Trump a pair of Ray-Ban Meta smart glasses.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.

Marketing

Your Most Powerful Marketing Weapon Is Hiding in the Finance Department — Here's Why

Transform your marketing leadership by turning finance from a barrier into a strategic ally. Learn how aligning with your finance team can drive unprecedented growth and innovation.

Starting a Business

They Bought an Ice Cream Truck Off eBay for $5,000. Now Their Company Has 70 Shops and Sells Treats in Over 12,000 Stores.

For the episode of "The Founder CEO," the co-founder and CEO of Van Leeuwen Ice Cream explains how one ice cream truck grew into a successful nationwide brand.