Shake Shack, Five Guys Named Most Overpriced Fast-Food in America: But Do Customers Care?

While the price attached to a traditional fast-food combo has been the subject of much dinner table discussion over the past few years, a recent study has singled out two notable chains as being particularly overpriced.

According to FOX Business, Shake Shack was awarded the dubious honor of claiming the top spot on the list as far as large chains are concerned, while Five Guys came in close behind.

Preply Data Reveals Shake Shack, Five Guys, Sugar Factory Considered Overpriced by Customers

In order to compile the data, Preply analyzed over 57,000 Google Reviews for over 10,000 restaurants in the top 50 U.S. cities, looking for certain key search terms. Search terms considered included "expensive," "pricey," "overpriced," and "not worth the money," among others.

"If you’ve ever gone out to eat and found yourself thinking about all the things you could have bought with the money you spent rather than savoring your meal, you most likely have fallen victim to overpriced dining," the survey authors wrote. "All too often, restaurants charge a premium for dishes that don’t always deliver. From overpriced basic burgers and tiny portion sizes to cocktails priced like they’re made out of gold, nothing is worse than paying a high price tag for a low-quality outcome."

Out of all the analyzed chains, Preply found that Shack Shack was the most overpriced, followed by Five Guys and then Sugar Factory.

As Eat This, Not That! detailed, Shake Shack initiated two different price hikes across its menus this year — once by 3% in mid-March in order to counteract inflationary pressure, and again (this time by 1.5%) in October.

According to a separate FOX Business report, Five Guys went viral for all the wrong reasons in March. After a diner shared a receipt for $22 (or $24 with tip) following the order of a bacon cheeseburger, soda, and fries, social media mocked the chain for its current prices.

"I guess I was expecting about $12 to $15 per person for Five Guys," X account Wall Street Silver said on the platform at the time, per FOX Business. "$22 (without tip) just seems to cross a line. What is the right amount these days?"

Despite Criticism, Shake Shack Reports Strong Earnings for Q3 2024

Despite having been named the most overpriced fast-food chain in America, Shake Shack doesn't seem to be taking the news too hard.

During its most recent earnings report, as Fast Casual reported, revenue surged by 14.7% and same-store growth ticked upward by 4.4%. The chain also experienced a 28% jump in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and opened 17 new locations. However, as USA Today reported in August, Shake Shack announced plans to close nine underperforming locations in September.

"We are proud of the results our team members delivered this quarter, as we grew total revenue 14.7% with 4.4% same-Shack sales growth and positive traffic," CEO Rob Lynch wrote in a letter to shareholders at the time. "We continue our strong momentum into October, as our marketing and operational initiatives continue to take hold."

As Five Guys is a privately held company, it is not required to offer earnings reports to shareholders.

While fast-food customers remain frugal with their choices, will more upscale options in the space such as Five Guys and Shake Shack be able to escape the demands of a value-conscious consumer? It's understood that both brands hold very loyal fanbases that espouse a quality-first perspective, perhaps not minding a higher bill in exchange for their favorite fast-food orders.