Wells Fargo & Company Cuts Shake Shack (NYSE:SHAK) Price Target to $80.00

Key Points

• Wells Fargo cut its price target on Shake Shack from $100 to $80 and kept an "equal weight" rating, implying roughly a 15% upside from the prior close.
• Shake Shack missed Q1 estimates—reporting break-even EPS versus $0.11 expected and revenue slightly below forecasts—with management citing weaker tourism and higher beef costs that helped trigger a sharp sell-off.
• Despite the miss, the company issued Q2 revenue guidance of $424M–$428M above consensus, and analysts remain mixed but generally positive, with a MarketBeat consensus of "Moderate Buy" and an average target of $114.50.

Shake Shack (NYSE:SHAK - Get Free Report) had its price target dropped by Wells Fargo & Company from $100.00 to $80.00 in a report released on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 14.94% from the company's previous close.

A number of other analysts have also recently commented on the stock. Raymond James Financial set a $140.00 price target on shares of Shake Shack in a research report on Wednesday, January 21st. JPMorgan Chase & Co. upped their price target on shares of Shake Shack from $95.00 to $100.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Shake Shack in a research report on Monday, April 20th. Bank of America raised shares of Shake Shack from an "underperform" rating to a "neutral" rating and increased their price objective for the stock from $88.00 to $101.00 in a research report on Tuesday, March 31st. Finally, DA Davidson reissued a "buy" rating and set a $125.00 price objective on shares of Shake Shack in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and thirteen have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $114.50.

Shake Shack Stock Performance

Shares of SHAK opened at $69.60 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 stock has a market capitalization of $2.97 billion, a P/E ratio of 63.81, a price-to-earnings-growth ratio of 3.76 and a beta of 1.78. The firm's fifty day simple moving average is $94.14 and its two-hundred day simple moving average is $91.01. Shake Shack has a 12 month low of $67.21 and a 12 month high of $144.65.

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

Insider Activity

In other news, insider Stephanie Ann Sentell sold 258 shares of the stock in a transaction dated 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 owned 15,084 shares of the company's stock, valued at $1,541,735.64. This represents a 1.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Shake Shack

A number of institutional investors and hedge funds have recently made changes to their positions in SHAK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Shake Shack by 4.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,627 shares of the company's stock worth $1,995,000 after acquiring an additional 976 shares during the last quarter. Jones Financial Companies Lllp raised its holdings in shares of Shake Shack by 4,210.3% in the 1st quarter. Jones Financial Companies Lllp now owns 2,500 shares of the company's stock worth $220,000 after acquiring an additional 2,442 shares during the last quarter. United Services Automobile Association acquired a new stake in shares of Shake Shack in the 1st quarter worth about $219,000. Geneos Wealth Management Inc. acquired a new stake in shares of Shake Shack in the 1st quarter worth about $26,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of Shake Shack by 159.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 748 shares of the company's stock worth $105,000 after acquiring an additional 460 shares during 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: High-profile investor Josh Brown added to his Shake Shack position, a vote of confidence that can support buyer interest. Trade Tracker: Josh Brown buys more Shake Shack
• Positive Sentiment: Company issued Q2 revenue guidance ($424M–$428M) that sits above consensus, suggesting top-line strength despite the quarter’s miss. View Press Release
• Positive Sentiment: Shake Shack named Michelle Hook as CFO, which may improve investor confidence in financial execution and reporting. Shake Shack Appoints Michelle Hook as Chief Financial Officer
• Neutral Sentiment: Earnings-call coverage emphasized resilient revenue growth and restaurant-level profit expansion amid volatility; useful context but not enough to offset the headline miss. Shake Shack Earnings Call Highlights Growth Amid Volatility
• Neutral Sentiment: Analyses note improved valuation metrics versus history (lower multiples), which could attract longer‑term investors if fundamentals stabilize. Shake Shack: When Valuation Met Reality
• Neutral Sentiment: Options activity picked up after earnings, indicating elevated short-term trading interest and volatility expectations. Options Traders Eyeing 2 Burger Giants After Earnings
• Negative Sentiment: Q1 results missed expectations: break-even EPS vs. consensus ~ $0.11 and revenue slightly below estimates; the company reported an operating loss driven by investments and higher beef costs. Those misses are the primary catalyst for the sell-off. Shake Shack Q1 Earnings / Conference Call
• Negative Sentiment: Management cited weakening tourism in key urban markets (notably NYC) and winter-storm impacts as near-term demand headwinds, increasing uncertainty around urban foot traffic recovery. Shake Shack shares shook by sales shock
• Negative Sentiment: TD Cowen trimmed its price target to $76 and moved to a "hold" rating, signaling reduced upside in the near term and adding selling pressure. TD Cowen Lowers Price Target
• Negative Sentiment: Market reaction has been sharp, with several outlets reporting a large intraday decline as traders reprice SHAK on the earnings miss and near-term demand risk. Shake Shack shares plunge on disappointing quarterly results

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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