Decoding 14 Analyst Evaluations For Shake Shack

During the last three months, 14 analysts shared their evaluations of Shake Shack SHAK, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Shake Shack, revealing an average target of $93.21, a high estimate of $115.00, and a low estimate of $74.00. Observing a 17.85% increase, the current average has risen from the previous average price target of $79.09.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Shake Shack by financial experts. The following summary presents 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Shake Shack compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Shake Shack's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Shake Shack analyst ratings.

All You Need to Know About Shake Shack

Shake Shack Inc is a roadside burger stand. 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.

Financial Insights: Shake Shack

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Shake Shack displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 3.63%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Shake Shack's net margin excels beyond industry benchmarks, reaching 2.36%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Shake Shack's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.57%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Shake Shack's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.43%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Shake Shack's debt-to-equity ratio is below the industry average. With a ratio of 1.71, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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