Expert Outlook: Shake Shack Through The Eyes Of 12 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.

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.

Analysts have recently evaluated Shake Shack and provided 12-month price targets. The average target is $122.25, accompanied by a high estimate of $154.00 and a low estimate of $85.00. A decline of 4.49% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Brian Bittner |Oppenheimer |Lowers |Outperform | $125.00|$155.00 | |David Tarantino |Baird |Lowers |Neutral | $85.00|$98.00 | |Alton Stump |Loop Capital |Announces |Buy | $127.00|- | |Anthony Trainor |Wells Fargo |Announces |Equal-Weight | $95.00|- | |John Ivankoe |JP Morgan |Lowers |Underweight | $105.00|$107.00 | |Jake Bartlett |Truist Securities |Raises |Buy | $154.00|$143.00 | |Nick Setyan |Wedbush |Raises |Neutral | $125.00|$115.00 | |Andrew Charles |TD Securities |Maintains |Buy | $140.00|$140.00 | |Chris O'Cull |Stifel |Lowers |Hold | $110.00|$128.00 | |Nick Setyan |Wedbush |Maintains |Neutral | $130.00|$130.00 | |Jake Bartlett |Truist Securities |Lowers |Buy | $143.00|$149.00 | |Chris O'Cull |Stifel |Raises |Hold | $128.00|$115.00 |

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 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 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.

Discovering Shake Shack: A Closer Look

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.

Financial Insights: Shake Shack

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, Shake Shack showcased positive performance, achieving a revenue growth rate of 14.83% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out 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 2.65%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.88%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.52%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Shake Shack's debt-to-equity ratio is below the industry average at 1.72, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

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 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.