The junk food trade: 4 plays on fast food

Character used for Jack's Munchie Meal ads by Jack in the Box
The junk food trade: 4 trades on 3 fast food chains   

Shake Shack looks like a risky stock buy despite the burger chain's better-than-expected quarterly results, some CNBC "Fast Money" traders said Wednesday.

The company posted earnings and revenue that beat analysts' projections as same-store sales rose 11.7 percent year-over-year. Shares jumped 10 percent in extended trading.

Shake Shack workers prepare orders on August 18, 2014 in Madison Square Park in New York City. Shake Shack is allegedly considering going public and holding an initial price offering (IPO).
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Shake Shack workers prepare orders on August 18, 2014 in Madison Square Park in New York City. Shake Shack is allegedly considering going public and holding an initial price offering (IPO).

"I have a lot of trouble with the valuation," said trader Tim Seymour.

Read MoreShake Shack shares jump on earnings beat

He called Jack in the Box a "much better story," adding that it is "improving and executing." Still, he noted the stock was not cheap at more than $90 per share.

In the restaurant chain space, trader Brian Kelly looked at El Pollo Loco. The stock has climbed 41 percent this year and closed Wednesday just above $28 per share. That company reports earnings Thursday afternoon.

But Shake Shack shares could have some value in the long term, trader Dan Nathan said. He noted that the chain has about 65 stores and room to grow.

Tim Seymour

Tim Seymour is long T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, JCP, KO, SUNE, TBT and VIP. Tim's firm is long BABA, BIDU, CHL, DAL, MCD, NKE, NOK, SBUX and YHOO.

Dan Nathan

Dan Nathan is long SO, GOOGL June call fly, DDD Aug Calls, TWTR, WMT June call spread, BBRY June calls, QQQ May 108/ 98 put spread, IWM May put fly, XLP May put spread, XLY May puts, LULU May puts and INTC May /July put spread.

Brian Kelly

Brian Kelly is long BTC=, BBRY, SPY puts and U.S. dollar. He is short Australian dollar, yen and yuan.

Karen Finerman

Karen is long BABA, BAC, C, FINL, FL, GOOG, GOOGL, JPM, M, KORS and SEDG. She is short SPY. Her firm is long AAPL, ANTM, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, M, KORS, SUNE, URI and XBI. Her firm is short IWM, SPY, XRT and MDY. Karen Finerman is on the board of GrafTech International.