Navigating 9 Analyst Ratings For Shake Shack

Analysts' ratings for Shake Shack SHAK over the last quarter vary from bullish to bearish, as provided by 9 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $71.11, a high estimate of $85.00, and a low estimate of $59.00. A decline of 1.51% from the prior average price target is evident in the current average.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Shake Shack among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Shake Shack. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Shake Shack compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Shake Shack's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Shake Shack's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Shake Shack analyst ratings.

Unveiling the Story Behind Shake Shack

Shake Shack Inc is a roadside burger stands. It is serving a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water.

A Deep Dive into Shake Shack's Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Shake Shack displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 21.24%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Shake Shack's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.76%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Shake Shack's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.85%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Shake Shack's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.49%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Shake Shack's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.84.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.