Peeling Back The Layers: Exploring Shake Shack Through Analyst Insights

Providing a diverse range of perspectives from bullish to bearish, 17 analysts have published ratings on Shake Shack SHAK in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Shake Shack and provided 12-month price targets. The average target is $112.06, accompanied by a high estimate of $127.00 and a low estimate of $90.00. Marking an increase of 0.48%, the current average surpasses the previous average price target of $111.53.

Decoding Analyst Ratings: A Detailed Look

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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Shake Shack. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Shake Shack compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Shake Shack's stock. This examination reveals shifts 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.

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.

A Deep Dive into Shake Shack's Financials

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 June, 2024, the company achieved an impressive revenue growth rate of 16.44%. This signifies 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.05%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.13%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Shake Shack's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.59%, 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 at 1.71, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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