BNP Paribas Exane Increases Shake Shack (NYSE:SHAK) Price Target to $81.00

Key Points

• BNP Paribas Exane raised Shake Shack’s price target from $77 to $81 and maintained an “outperform” rating, implying 14.28% upside from the prior close.
• Shake Shack’s latest quarter beat expectations, with EPS of $0.43 versus the $0.31 consensus and revenue of $417.62 million, up 17.2% year over year. However, EPS declined slightly from $0.44 a year earlier and the company’s net margin remained low at 2.76%.
• Analyst sentiment is mixed: 15 analysts rate the stock a Buy, 10 a Hold and 2 a Sell, producing a consensus “Hold” rating and $89.09 price target. The shares recently traded at $70.88, while insiders purchased about $3.1 million worth of stock over the past 90 days.

Shake Shack (NYSE:SHAK - Get Free Report) had its target price increased by equities research analysts at BNP Paribas Exane from $77.00 to $81.00 in a report released on Thursday,Benzinga reports. The firm presently has an "outperform" rating on the stock. BNP Paribas Exane's price target would suggest a potential upside of 14.28% from the company's previous close.

Several other research analysts have also issued reports on SHAK. Gordon Haskett lowered their price target on shares of Shake Shack from $90.00 to $70.00 and set a "buy" rating for the company in a report on Wednesday, June 3rd. The Goldman Sachs Group reissued a "buy" rating on shares of Shake Shack in a research report on Friday, May 8th. Morgan Stanley set a $74.00 target price on shares of Shake Shack in a report on Thursday. Wall Street Zen downgraded Shake Shack from a "hold" rating to a "strong sell" rating in a research note on Saturday, May 16th. Finally, Zacks Research lowered Shake Shack from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 7th. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $89.09.

Shake Shack Price Performance

SHAK stock traded down $3.45 during midday trading on Thursday, reaching $70.88. 1,400,234 shares of the stock were exchanged, compared to its average volume of 1,900,848. The stock has a market capitalization of $3.03 billion, a PE ratio of 72.07, a P/E/G ratio of 5.26 and a beta of 1.63. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. The company has a fifty day moving average price of $58.34 and a 200 day moving average price of $78.23. Shake Shack has a 52 week low of $51.60 and a 52 week high of $114.39.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.12. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The business had revenue of $417.62 million during the quarter, compared to analyst estimates of $417.18 million. During the same quarter last year, the business earned $0.44 EPS. The firm's quarterly revenue was up 17.2% on a year-over-year basis. As a group, analysts expect that Shake Shack will post 1.1 EPS for the current fiscal year.

Insider Buying and Selling at Shake Shack

In related news, Director Daniel Harris Meyer purchased 32,258 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The stock was bought at an average price of $61.88 per share, for a total transaction of $1,996,125.04. Following the completion of the transaction, the director owned 378,670 shares in the company, valued at $23,432,099.60. This represents a 9.31% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Sumaiya Balbale acquired 4,068 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average price of $61.42 per share, with a total value of $249,856.56. Following the acquisition, the director directly owned 13,407 shares of the company's stock, valued at $823,457.94. The trade was a 43.56% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 50,616 shares of company stock valued at $3,109,782 in the last ninety days. 8.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Shake Shack

Several institutional investors and hedge funds have recently bought and sold shares of SHAK. Swedbank AB purchased a new stake in shares of Shake Shack in the fourth quarter worth about $84,092,000. Adage Capital Partners GP L.L.C. bought a new position in shares of Shake Shack in the fourth quarter worth $40,829,000. Wellington Management Group LLP raised its position in shares of Shake Shack by 21.0% in the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock worth $242,535,000 after buying an additional 450,406 shares in the last quarter. Marshall Wace LLP raised its position in shares of Shake Shack by 285.2% in the third quarter. Marshall Wace LLP now owns 586,999 shares of the company's stock worth $54,949,000 after buying an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC bought a new stake in Shake Shack during the fourth quarter valued at $20,455,000. 86.07% of the stock is owned by institutional investors.

Trending Headlines about Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Activist-investor catalyst: Starboard Value disclosed a position worth several hundred million dollars in Shake Shack. The investment could support strategic, operational or shareholder-value initiatives and helped drive investor interest in the stock. Shake Shack pops after Starboard Value discloses a sizable stake
• Positive Sentiment: Quarterly earnings beat expectations: Second-quarter adjusted earnings were $0.43 per share versus the $0.31 analyst consensus, while revenue of $417.62 million slightly exceeded estimates and increased 17.2% year over year. Shake Shack Q2 Earnings Beat Estimates
• Positive Sentiment: Continued unit expansion: Shake Shack expects to open 60 to 65 company-operated restaurants in 2026. New locations, including planned restaurants in Highland Village and Elk Grove, support the company’s longer-term sales-growth strategy. Shake Shack targets 60 to 65 company-operated Shacks in 2026
• Neutral Sentiment: Management issued 2026 revenue guidance of approximately $1.6 billion to $1.7 billion, broadly in line with consensus, but shifted to providing annual rather than quarterly guidance. That change may reduce near-term visibility for investors.
• Negative Sentiment: Profitability concerns overshadowed the beat: Although revenue rose, quarterly EPS declined from $0.44 a year earlier to $0.43 as operating expenses and other costs increased. Shake Shack’s reported net margin was only 2.76%, highlighting limited room for cost inflation. Shake Shack Revenue Climbs, Profit Slips on Higher Costs

Shake Shack Company Profile

Shake Shack, Inc NYSE: SHAK is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City's Madison Square Park in 2001 by Danny Meyer's Union Square Hospitality Group.

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