Shake Shack, Inc. (NYSE:SHAK) Stock Has Average Target Price of $87.22

Shake Shack, Inc. (NYSE:SHAK) has received a consensus recommendation of “Moderate Buy” from the twenty-eight research firms that are currently covering the stock, MarketBeat reports. Twelve research analysts have rated the stock with a hold rating and sixteen have issued a buy rating on the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $87.22.

Several brokerages recently issued reports on SHAK. Seaport Research Partners assumed coverage on Shake Shack in a research note on Wednesday, September 16th. They issued a “neutral” rating on the stock. Robert W. Baird upgraded Shake Shack to a “hold” rating in a report on Monday, August 24th. DA Davidson increased their price target on Shake Shack from $70.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Zacks Research raised Shake Shack from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 5th. Finally, Royal Bank Of Canada assumed coverage on Shake Shack in a research note on Tuesday, September 8th. They set an “outperform” rating and a $89.00 price target on the stock.

Key Stories Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Brazil expansion creates a long-term growth opportunity. Shake Shack plans to open 40 restaurants in Brazil by 2036 through a licensing partnership with Bold Hospitality. The asset-light model could expand the brand’s Latin American presence while limiting the capital required from Shake Shack. Shake Shack Plans Entry Into Brazil With Bold Hospitality Licensing Partnership
• Positive Sentiment: Analyst expectations remain supportive. A reported consensus price target implies substantial upside, while upward earnings-estimate revisions may provide a near-term catalyst. However, the article notes that price targets alone have limited predictive value. Wall Street Analysts Predict a 32.34% Upside in Shake Shack
• Positive Sentiment: Restaurant-sector transaction news lifted sentiment. Shake Shack was cited among restaurant stocks rising after reports of a potential rival takeover, suggesting investors are viewing consolidation as supportive for branded restaurant valuations. The Chipotle Effect: Jersey Mike’s, Shake Shack Stocks Rise on Rival’s Takeover Report
• Neutral Sentiment: Australia marketing activity is returning. Shake Shack plans a 21-day Australian comeback, which could support brand awareness and customer demand, though prior pricing criticism may limit the impact. Shake Shack Returning to Australia for 21 Days
• Negative Sentiment: Margin pressure tempers strong sales growth. Quarterly revenue increased 17.2% year over year and earnings exceeded expectations, but tighter margins could constrain profitability and keep valuation concerns in focus. Shake Shack Reports 17.2 Percent Revenue Growth as Margins Tighten

Shake Shack Price Performance

Shake Shack stock opened at $67.36 on Tuesday. The stock has a market cap of $2.88 billion, a price-to-earnings ratio of 71.66, a price-to-earnings-growth ratio of 7.02 and a beta of 1.68. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64. Shake Shack has a 1 year low of $51.60 and a 1 year high of $107.46. The firm has a 50-day moving average of $66.07 and a two-hundred day moving average of $69.58.

Shake Shack (NYSE:SHAK) last issued its earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business had revenue of $417.62 million for the quarter, compared to the consensus estimate of $417.18 million. During the same period in the prior year, the firm earned $0.44 EPS. The company’s revenue for the quarter was up 17.2% compared to the same quarter last year. On average, research analysts forecast that Shake Shack will post 1.13 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SHAK. Hilton Head Capital Partners LLC lifted its position in shares of Shake Shack by 65.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 513 shares of the company’s stock worth $45,000 after purchasing an additional 202 shares during the period. Integrated Wealth Concepts LLC purchased a new position in Shake Shack during the second quarter valued at approximately $47,000. IFP Advisors Inc increased its holdings in Shake Shack by 43.0% during the second quarter. IFP Advisors Inc now owns 924 shares of the company’s stock valued at $52,000 after buying an additional 278 shares during the period. CoreCap Advisors LLC raised its stake in Shake Shack by 181.1% in the second quarter. CoreCap Advisors LLC now owns 1,088 shares of the company’s stock worth $61,000 after buying an additional 701 shares in the last quarter. Finally, Murphy & Mullick Capital Management Corp raised its stake in Shake Shack by 42.5% in the first quarter. Murphy & Mullick Capital Management Corp now owns 738 shares of the company’s stock worth $65,000 after buying an additional 220 shares in the last quarter. Hedge funds and other institutional investors own 86.07% of the company’s stock.

Shake Shack Company Profile

Shake Shack Inc operates a fast-casual restaurant brand known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes, and beverages including beer and wine at select locations. Its menu emphasizes premium ingredients and includes vegetarian and other non-meat options.

The company began as a seasonal hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004. Shake Shack has since expanded through a combination of company-operated and licensed restaurants, with locations across the United States and in international markets, including parts of Asia, Europe and the Middle East.

Shake Shack also offers digital ordering, delivery, catering and merchandise.