Q1 EPS Estimates for Shake Shack Cut by Zacks Research

Key Points

• Zacks Research cut Shake Shack’s Q1 2027 EPS estimate to $0.07 from $0.13, indicating weaker near-term earnings expectations.
• The analyst also lowered forecasts for several later quarters and full-year periods, including FY2027 EPS to $1.26 and FY2028 EPS to $1.68, suggesting a more cautious outlook overall.
• Despite the reduced estimates, Shake Shack still carries a Moderate Buy consensus rating with a $91.00 target price, though the stock was trading near $54 and had recently been under pressure.

Shake Shack, Inc. (NYSE:SHAK - Free Report) - Research analysts at Zacks Research decreased their Q1 2027 EPS estimates for shares of Shake Shack in a research report issued on Wednesday, July 8th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.07 for the quarter, down from their previous estimate of $0.13. The consensus estimate for Shake Shack's current full-year earnings is $1.16 per share. Zacks Research also issued estimates for Shake Shack's Q2 2027 earnings at $0.43 EPS, Q3 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.40 EPS, FY2027 earnings at $1.26 EPS, Q1 2028 earnings at $0.23 EPS, Q2 2028 earnings at $0.51 EPS and FY2028 earnings at $1.68 EPS.

SHAK has been the subject of several other research reports. Wall Street Zen downgraded shares of Shake Shack from a "hold" rating to a "strong sell" rating in a report on Saturday, May 16th. Barclays decreased their price target on Shake Shack from $118.00 to $96.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Piper Sandler set a $79.00 price objective on Shake Shack in a research report on Thursday, May 7th. Bank of America upgraded Shake Shack from an "underperform" rating to a "neutral" rating and upped their price objective for the company from $88.00 to $101.00 in a research note on Tuesday, March 31st. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $66.00 target price on shares of Shake Shack in a research report on Tuesday, June 2nd. Fifteen investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Shake Shack currently has a consensus rating of "Moderate Buy" and a consensus target price of $91.00.

Shake Shack Trading Down 1.2%

NYSE SHAK opened at $54.24 on Thursday. The company has a current ratio of 1.69, a quick ratio of 1.66 and a debt-to-equity ratio of 0.45. The firm has a market capitalization of $2.32 billion, a P/E ratio of 55.35, a PEG ratio of 2.44 and a beta of 1.63. The business has a fifty day simple moving average of $63.12 and a 200 day simple moving average of $82.05. Shake Shack has a 12 month low of $51.60 and a 12 month high of $144.65.

Hedge Funds Weigh In On Shake Shack

Hedge funds have recently bought and sold shares of the company. Intech Investment Management LLC lifted its stake in Shake Shack by 40.1% during the fourth quarter. Intech Investment Management LLC now owns 77,916 shares of the company's stock worth $6,324,000 after purchasing an additional 22,287 shares during the last quarter. Divisadero Street Capital Management LP lifted its holdings in shares of Shake Shack by 407.8% in the 3rd quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company's stock worth $5,334,000 after acquiring an additional 45,762 shares during the last quarter. Madison Asset Management LLC boosted its stake in shares of Shake Shack by 37.3% in the 4th quarter. Madison Asset Management LLC now owns 58,404 shares of the company's stock valued at $4,741,000 after purchasing an additional 15,852 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in shares of Shake Shack during the 4th quarter valued at $2,898,000. Finally, 12 West Capital Management LP grew its holdings in shares of Shake Shack by 13.6% during the 3rd quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company's stock valued at $164,154,000 after purchasing an additional 210,000 shares during the last quarter. Hedge funds and other institutional investors own 86.07% of the company's stock.

Insider Activity at Shake Shack

In related news, Director Jeffrey Flug purchased 1,000 shares of the business's stock in a transaction dated Friday, May 15th. The stock was purchased at an average cost of $61.30 per share, with a total value of $61,300.00. Following the completion of the acquisition, the director directly owned 5,470 shares of the company's stock, valued at approximately $335,311. The trade was a 22.37% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Robert Lynch acquired 5,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average cost of $60.39 per share, for a total transaction of $301,950.00. Following the acquisition, the chief executive officer directly owned 77,845 shares in the company, valued at $4,701,059.55. This represents a 6.86% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 50,616 shares of company stock worth $3,109,782 in the last ninety days. Insiders own 8.32% of the company's stock.

Key Shake Shack News

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

• Negative Sentiment: Zacks Research lowered Shake Shack’s Q1 2027 EPS estimate to $0.07 from $0.13, signaling weaker expected profitability in the near term.
• Negative Sentiment: The firm also trimmed Q2 2027, Q3 2027, Q4 2027, Q1 2028, and Q2 2028 estimates, pointing to a more conservative outlook across several future quarters.
• Negative Sentiment: FY2027 EPS was cut to $1.26 from $1.39, and FY2028 EPS was reduced to $1.68 from $1.81, which may weigh on valuation expectations. SHAK analyst estimate updates
• Neutral Sentiment: Additional media coverage touched on Shake Shack in broader restaurant and consumer-food stories, but these items did not appear to be material stock-moving catalysts. Dairy Queen hires Shake Shack vet to modernize tech

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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