Shake Shack FY2026 EPS Forecast Lowered by Zacks Research

Key Points

• Zacks Research cut its FY2026 EPS estimate for Shake Shack to $1.13 from $1.38 and kept a Hold rating on the stock.
• Shake Shack’s latest quarterly results missed expectations, reporting $0.00 EPS versus the $0.11 consensus and revenue of $366.74 million versus the $372.43 million estimate.
• Despite the weaker outlook, several insiders and institutional investors have been buying shares, including CEO Robert Lynch and director Jeffrey Flug, while the stock has fallen near its 52-week low.

Shake Shack, Inc. (NYSE:SHAK - Free Report) - Analysts at Zacks Research dropped their FY2026 EPS estimates for Shake Shack in a report issued on Thursday, May 21st. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.13 for the year, down from their prior estimate of $1.38. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Shake Shack's current full-year earnings is $1.24 per share. Zacks Research also issued estimates for Shake Shack's Q1 2027 earnings at $0.13 EPS, FY2027 earnings at $1.39 EPS and FY2028 earnings at $1.81 EPS.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings data 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). Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The business had revenue of $366.74 million for the quarter, compared to the consensus estimate of $372.43 million. During the same quarter in the prior year, the business posted $0.14 earnings per share. Shake Shack's revenue for the quarter was up 14.3% on a year-over-year basis.

SHAK has been the topic of a number of other reports. TD Cowen dropped their price objective on shares of Shake Shack from $105.00 to $76.00 and set a "hold" rating on the stock in a research note on Thursday, May 7th. Barclays lowered their target price on shares of Shake Shack from $118.00 to $96.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Robert W. Baird set a $76.00 target price on shares of Shake Shack in a research note on Thursday, May 7th. Wall Street Zen downgraded shares of Shake Shack from a "hold" rating to a "strong sell" rating in a research note on Saturday, May 16th. Finally, Morgan Stanley restated an "overweight" rating on shares of Shake Shack in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $107.08.

Shake Shack Price Performance

NYSE SHAK opened at $61.50 on Wednesday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69. The firm's 50 day moving average price is $86.14 and its 200-day moving average price is $88.31. Shake Shack has a 52-week low of $59.49 and a 52-week high of $144.65. The company has a market cap of $2.63 billion, a PE ratio of 62.76, a P/E/G ratio of 2.59 and a beta of 1.78.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE raised its holdings in shares of Shake Shack by 9.3% in the first quarter. Bank of America Corp DE now owns 899,013 shares of the company's stock worth $79,536,000 after buying an additional 76,724 shares during the last quarter. Amundi raised its holdings in shares of Shake Shack by 19.8% in the first quarter. Amundi now owns 7,626 shares of the company's stock worth $675,000 after buying an additional 1,261 shares during the last quarter. California State Teachers Retirement System raised its holdings in shares of Shake Shack by 23.2% in the first quarter. California State Teachers Retirement System now owns 44,636 shares of the company's stock worth $3,949,000 after buying an additional 8,409 shares during the last quarter. Quantinno Capital Management LP raised its holdings in shares of Shake Shack by 655.6% in the first quarter. Quantinno Capital Management LP now owns 55,362 shares of the company's stock worth $4,898,000 after buying an additional 48,035 shares during the last quarter. Finally, SummitTX Capital L.P. purchased a new position in shares of Shake Shack in the first quarter worth $542,000. Hedge funds and other institutional investors own 86.07% of the company's stock.

Insiders Place Their Bets

In related news, Director Jeffrey Flug purchased 1,000 shares of the firm's stock in a transaction on Friday, May 15th. The stock was acquired at an average price of $61.30 per share, with a total value of $61,300.00. Following the completion of the acquisition, the director owned 5,470 shares in the company, valued at approximately $335,311. This represents a 22.37% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Robert Lynch purchased 5,000 shares of the firm's stock in a transaction on Friday, May 15th. The stock was bought at an average cost of $60.39 per share, with a total value of $301,950.00. Following the acquisition, the chief executive officer owned 77,845 shares of the company's stock, valued at approximately $4,701,059.55. The trade was a 6.86% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 50,616 shares of company stock valued at $3,109,782. Corporate insiders own 8.32% of the company's stock.

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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