Jack in the Box looks more appealing than El Pollo Loco if it falls to a cheaper entry point, said trader Guy Adami. He would look to buy Jack in the Box stock if it fell to $85 per share, more than $2 lower than its Thursday close.
Trader Dan Nathan preferred struggling fast food giant McDonald's as it attempts a turnaround. The stock sits just below $100 per share, but looks "poised for a breakout" from there, he said.
Both traders contended that more troubles could face Shake Shack shares going forward. The stock closed more than 15 percent lower after Shake Shack said it priced a 4 million-share offering at $60 per share.
While the introduction of shares should "help liquidity," the stock could have more downside, Nathan said. However, he noted that investors could "take a shot" at the stock at $50 per share, more than $4 lower than where it closed Thursday.
Adami, though, contended that Shake Shack looks "way too volatile" to buy and could dip below $50 per share.
Dan is long QQQ sept put, JOY sept calls, TWTR, TWTR sept call spreads, BA sept put spread, COST aug put spread, TJX aug put, SLB aug 28th put spread, MSFT Aug / Nov put spread, GOOGL Sept put spread.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.