Zacks Research Has Weak Estimate for Shake Shack Q2 Earnings

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Shake Shack to $0.42 from $0.46 and kept a Hold rating on the stock.
• Shake Shack’s most recent quarterly results missed expectations, reporting $0.00 EPS versus the $0.11 consensus and revenue of $366.74 million versus the expected $372.43 million.
• Despite the weaker outlook, insiders have been buying shares, including two directors who recently increased their holdings, while institutions continue to own the majority of the stock.

Shake Shack, Inc. (NYSE:SHAK - Free Report) - Investment analysts at Zacks Research lowered their Q2 2026 earnings per share (EPS) estimates for Shake Shack in a research report issued to clients and investors on Thursday, May 21st. Zacks Research analyst Team now anticipates that the company will earn $0.42 per share for the quarter, down from their prior estimate of $0.46. Zacks Research 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 Q3 2026 earnings at $0.37 EPS, Q4 2026 earnings at $0.34 EPS, Q2 2027 earnings at $0.44 EPS, Q3 2027 earnings at $0.39 EPS, Q4 2027 earnings at $0.43 EPS and Q1 2028 earnings at $0.26 EPS.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its quarterly 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 9.62% and a net margin of 2.76%.The business's revenue for the quarter was up 14.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.14 EPS.

A number of other brokerages also recently issued reports on SHAK. Wolfe Research started coverage on Shake Shack in a research report on Monday, March 9th. They set an "outperform" rating and a $118.00 price target on the stock. Truist Financial increased their target price on Shake Shack from $144.00 to $148.00 and gave the company a "buy" rating in a report on Monday, March 2nd. Oppenheimer set a $100.00 target price on Shake Shack in a research report on Friday, May 8th. Piper Sandler set a $79.00 target price on Shake Shack in a research report on Thursday, May 7th. Finally, Wall Street Zen downgraded Shake Shack from a "hold" rating to a "strong sell" rating in a research report on Saturday, May 16th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $107.08.

Shake Shack Stock Performance

Shares of SHAK stock opened at $62.74 on Monday. The company has a market capitalization of $2.68 billion, a P/E ratio of 64.02, a P/E/G ratio of 2.59 and a beta of 1.78. The business's 50 day moving average is $87.14 and its two-hundred day moving average is $88.77. The company has a current ratio of 1.69, a quick ratio of 1.66 and a debt-to-equity ratio of 0.45. Shake Shack has a 12-month low of $59.49 and a 12-month high of $144.65.

Insiders Place Their Bets

In other news, Director Sumaiya Balbale bought 4,068 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were acquired at an average price of $61.42 per share, for a total transaction of $249,856.56. Following the completion of the transaction, the director directly owned 13,407 shares in the company, valued at $823,457.94. The trade was a 43.56% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Jeffrey Flug bought 1,000 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was purchased at an average price of $61.30 per share, for a total transaction of $61,300.00. Following the transaction, the director owned 5,470 shares of the company's stock, valued at approximately $335,311. This represents a 22.37% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have bought 50,616 shares of company stock valued at $3,109,782. 8.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP increased its holdings in shares of 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 purchasing an additional 450,406 shares during the last quarter. 12 West Capital Management LP increased its holdings in shares of Shake Shack by 12.0% in the fourth quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company's stock valued at $159,385,000 after purchasing an additional 210,000 shares during the last quarter. State Street Corp increased its holdings in shares of 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 purchasing an additional 15,607 shares during the last quarter. Swedbank AB acquired a new stake in shares of Shake Shack in the fourth quarter valued at approximately $84,092,000. Finally, Van Berkom & Associates Inc. increased its holdings in shares of 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 purchasing an additional 199,687 shares during the last quarter. Institutional investors and hedge funds own 86.07% of the company's stock.

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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