Where Shake Shack Stands With Analysts

In the preceding three months, 12 analysts have released ratings for Shake Shack SHAK, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $140.0, with a high estimate of $159.00 and a low estimate of $110.00. Witnessing a positive shift, the current average has risen by 4.91% from the previous average price target of $133.45.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Shake Shack among financial experts becomes clear with a thorough analysis 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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Shake Shack compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Shake Shack's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Shake Shack's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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 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.

Shake Shack's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Shake Shack's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 14.74%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Shake Shack's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -3.22%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Shake Shack's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.22%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Shake Shack's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.61%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Shake Shack's debt-to-equity ratio is below the industry average. With a ratio of 1.76, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

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