Deep Dive Into Shake Shack Stock: Analyst Perspectives (13 Ratings)

Throughout the last three months, 13 analysts have evaluated Shake Shack SHAK, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Shake Shack, presenting an average target of $137.85, a high estimate of $159.00, and a low estimate of $105.00. This upward trend is apparent, with the current average reflecting a 5.09% increase from the previous average price target of $131.17.

Analyzing Analyst Ratings: A Detailed Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Shake Shack. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction 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: Understanding forecasts, analysts offer estimates for Shake Shack's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Shake Shack's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Shake Shack analyst ratings.

About Shake Shack

Shake Shack Inc is a roadside burger stand. It serves 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: Delving into Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Shake Shack's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 14.83%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Shake Shack's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 2.65%, 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 1.88%, 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 0.52%, 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 1.72, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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