Shake Shack, Inc. (SHAK) - What Are Researchers Thinking About This Stock?

Key Points

• Analysts rate Shake Shack “Moderate Buy”: Of 28 analysts, 16 recommend buying and 12 recommend holding, with an average 12-month price target of $87.
• Growth and earnings remain key catalysts: The company is expanding with new restaurants, while analysts expect year-over-year earnings to decline in the upcoming report, increasing the importance of management guidance.
• Valuation is elevated: SHAK traded near $70.38 with a P/E ratio of 74.87, despite recently reporting revenue growth of 17.2% and quarterly EPS of $0.43, above estimates.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-eight analysts that are covering the company, Marketbeat Ratings reports. Twelve investment analysts have rated the stock with a hold recommendation and sixteen have issued a buy recommendation on the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $87.00.

A number of equities research analysts recently weighed in on SHAK shares. Morgan Stanley raised their target price on shares of Shake Shack from $74.00 to $79.00 and gave the company an "equal weight" rating in a research note on Thursday, October 15th. Wells Fargo & Company boosted their price target on shares of Shake Shack from $65.00 to $70.00 and gave the stock an "equal weight" rating in a research note on Wednesday, October 21st. Robert W. Baird raised shares of Shake Shack to a "hold" rating in a report on Monday, August 24th. UBS Group increased their price target on shares of Shake Shack from $68.00 to $73.00 and gave the stock a "neutral" rating in a report on Thursday, October 22nd. Finally, Seaport Research Partners began coverage on shares of Shake Shack in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock.

Key Shake Shack News

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

• Positive Sentiment: Shake Shack continues expanding its footprint with new locations in Norman, Oklahoma, and East Meadow, New York. New restaurants can support long-term revenue growth and increase brand visibility. Shake Shack opens in Norman as city sees continued growth
• Neutral Sentiment: Mizuho lowered its Shake Shack price target from $90 to $80 but maintained an “outperform” rating. The reduced target signals more cautious expectations, while the rating indicates the analyst still sees potential upside from current levels. Mizuho stock recommendations
• Neutral Sentiment: Shake Shack’s Norman opening is also receiving local attention as the city continues to grow, potentially supporting demand at the new location. However, the article provides no companywide financial update. Shake Shack opens in Norman on Wednesday
• Negative Sentiment: Zacks reported that analysts expect Shake Shack to post a year-over-year earnings decline in its upcoming report. With the stock trading at a relatively high valuation, any earnings miss or cautious outlook could create additional pressure. Analysts Estimate Shake Shack to Report a Decline in Earnings
• Neutral Sentiment: Shake Shack is projected to release quarterly earnings on Thursday, making the report and management’s guidance the next major catalysts for SHAK. Shake Shack projected to release earnings

Institutional Investors Weigh In On Shake Shack

Hedge funds have recently added to or reduced their stakes in the company. Covestor Ltd grew its position in Shake Shack by 94.0% during the third quarter. Covestor Ltd now owns 1,426 shares of the company's stock valued at $84,000 after acquiring an additional 691 shares during the last quarter. Hedeker Wealth LLC raised its stake in shares of Shake Shack by 1.3% during the third quarter. Hedeker Wealth LLC now owns 51,413 shares of the company's stock worth $3,017,000 after acquiring an additional 661 shares in the last quarter. Wedbush Securities Inc. lifted its holdings in shares of Shake Shack by 269.6% in the 3rd quarter. Wedbush Securities Inc. now owns 14,520 shares of the company's stock worth $852,000 after acquiring an additional 10,591 shares during the last quarter. Sterling Capital Management LLC lifted its holdings in shares of Shake Shack by 838.8% in the 3rd quarter. Sterling Capital Management LLC now owns 1,305 shares of the company's stock worth $77,000 after acquiring an additional 1,166 shares during the last quarter. Finally, Root Financial Partners LLC bought a new stake in shares of Shake Shack in the 3rd quarter worth approximately $31,000. Institutional investors own 86.07% of the company's stock.

Shake Shack Stock Down 0.2%

SHAK stock opened at $70.38 on Friday. The stock's fifty day simple moving average is $65.28 and its two-hundred day simple moving average is $75.07. The company has a current ratio of 1.67, a quick ratio of 1.64 and a debt-to-equity ratio of 0.43. Shake Shack has a 1-year low of $51.60 and a 1-year high of $107.46. The stock has a market cap of $3.01 billion, a P/E ratio of 74.87, a P/E/G ratio of 7.55 and a beta of 1.68.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.12. The business had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%. The company's quarterly revenue was up 17.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.44 EPS. Analysts expect that Shake Shack will post 1.13 EPS for the current year.

About Shake Shack

Shake Shack Inc operates a fast-casual restaurant chain known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes and beverages. Its menu also includes vegetarian and other specialty items, with offerings varying by location. The company emphasizes hospitality, quality ingredients and restaurant designs intended to support both dine-in and takeout service.

The business began as a temporary hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004.

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