Pier Capital LLC Invests $2.94 Million in Shake Shack, Inc. $SHAK

Key Points

• Pier Capital LLC initiated a new stake in Shake Shack, buying 36,189 shares valued at approximately $2.94 million, representing about 0.08% of the company; institutional investors now own roughly 86.07% of SHAK.
• Shake Shack missed Q1 expectations—break-even adjusted EPS vs. $0.11 consensus and revenue of $366.74M vs. $372.43M—triggering a stock sell-off and a swing to an operating loss due to higher costs and investments.
• Offsetting the miss, restaurant-level profit improved (+17% YoY, unit margins ~21.2%), management issued a Q2 revenue guide above consensus, and Michelle Hook was named the new CFO to bolster financial leadership.

Pier Capital LLC purchased a new position in shares of Shake Shack, Inc. (NYSE:SHAK - Free Report) during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 36,189 shares of the company's stock, valued at approximately $2,937,000. Pier Capital LLC owned approximately 0.08% of Shake Shack as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in SHAK. Wellington Management Group LLP raised its holdings in Shake Shack by 21.0% in the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock valued at $242,535,000 after acquiring an additional 450,406 shares in the last quarter. 12 West Capital Management LP raised its holdings in Shake Shack by 13.6% in the third quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company's stock valued at $164,154,000 after acquiring an additional 210,000 shares in the last quarter. State Street Corp raised its holdings in Shake Shack by 1.1% in the second quarter. State Street Corp now owns 1,470,084 shares of the company's stock valued at $206,694,000 after acquiring an additional 15,607 shares in the last quarter. Swedbank AB acquired a new stake in Shake Shack in the fourth quarter valued at approximately $84,092,000. Finally, Van Berkom & Associates Inc. raised its holdings in Shake Shack by 27.6% in the fourth quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company's stock valued at $74,948,000 after acquiring an additional 199,687 shares in the last quarter. Institutional investors and hedge funds own 86.07% of the company's stock.

Shake Shack News Roundup

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

• Positive Sentiment: Better-than-expected Q2 revenue guide: management issued Q2 revenue guidance of $424M–$428M, above the consensus cited by reporters — a near-term revenue outlook bright spot. CNBC: Shake Shack shares drop after earnings
• Positive Sentiment: New CFO named: Michelle Hook will join as CFO (effective May 11), which could steady financial leadership and investor communications. Business Wire: Michelle Hook appointment
• Positive Sentiment: Strong restaurant-level profit and margin trends: restaurant-level profit rose (reported +17% YoY) and unit margins improved to ~21.2%, suggesting the core business is healthy even as corporate profitability swings negative. Seeking Alpha: valuation and unit economics
• Neutral Sentiment: High options activity and analyst discussion: options traders and commentators flagged SHAK as a volatile, earnings-driven name today — useful for traders but not a directional fundamental signal. Schaeffers: options activity
• Neutral Sentiment: Earnings call transcript/recap available — contains color on causes and cadence of recovery; review for detail if you own the stock. Seeking Alpha: earnings call transcript
• Negative Sentiment: Quarterly EPS and revenue missed expectations: Shake Shack reported break-even adjusted EPS (below Street estimates) and reported Q1 revenue that missed estimates (reports cite ~$366.7M), prompting investor sell-off. Barron's: revenue miss
• Negative Sentiment: Operating loss and higher costs: the company swung to an operating loss after investments in marketing/technology and rising beef costs — a near-term margin headwind. WSJ: swung to loss
• Negative Sentiment: Execution and demand headwinds called out by management: CEO cited softer tourism in large urban markets (notably NYC), winter storms and increased near-term store-opening cadence as factors weighing on results. New York Post: tourism and sales shock
• Negative Sentiment: Analyst reaction: TD Cowen cut its price target to $76 and set a "hold," signaling reduced upside in the near term. Benzinga/Fly: TD Cowen cut

Insider Activity

In other news, insider Stephanie Ann Sentell sold 258 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total transaction of $26,370.18. Following the transaction, the insider directly owned 15,084 shares in the company, valued at approximately $1,541,735.64. This trade represents a 1.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 8.50% of the company's stock.

Shake Shack Stock Performance

Shares of SHAK opened at $69.49 on Friday. The company has a current ratio of 1.76, a quick ratio of 1.73 and a debt-to-equity ratio of 0.45. The firm has a market cap of $2.97 billion, a PE ratio of 63.75, a price-to-earnings-growth ratio of 3.76 and a beta of 1.78. The company's 50 day simple moving average is $94.14 and its 200-day simple moving average is $91.01. Shake Shack, Inc. has a 12-month low of $67.21 and a 12-month high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.00 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.11). The business had revenue of $366.74 million for the quarter, compared to analysts' expectations of $372.43 million. Shake Shack had a return on equity of 11.08% and a net margin of 3.16%.The business's revenue was up 14.3% on a year-over-year basis. During the same quarter last year, the business posted $0.14 earnings per share. As a group, equities analysts predict that Shake Shack, Inc. will post 1.4 EPS for the current year.

Wall Street Analysts Forecast Growth

SHAK has been the topic of several analyst reports. JPMorgan Chase & Co. raised their target price on shares of Shake Shack from $95.00 to $100.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Wells Fargo & Company increased their price target on shares of Shake Shack from $90.00 to $100.00 and gave the company an "equal weight" rating in a research note on Friday, February 27th. Bank of America upgraded shares of Shake Shack from an "underperform" rating to a "neutral" rating and increased their price target for the company from $88.00 to $101.00 in a research note on Tuesday, March 31st. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $117.00 price target on shares of Shake Shack in a research note on Wednesday, April 15th. Finally, Raymond James Financial set a $140.00 price target on shares of Shake Shack in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and fourteen have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $116.17.

About Shake Shack

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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