Shake Shack (NYSE:SHAK) Downgraded to “Strong Sell” Rating by Zacks Research

Shake Shack (NYSE:SHAK) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Shake Shack’s Q1 2027 earnings at $0.07 EPS, Q2 2027 earnings at $0.43 EPS, Q3 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.40 EPS, FY2027 earnings at $1.26 EPS, Q1 2028 earnings at $0.23 EPS, Q2 2028 earnings at $0.51 EPS and FY2028 earnings at $1.68 EPS.

Several other brokerages have also issued reports on SHAK. BNP Paribas Exane dropped their price target on Shake Shack from $100.00 to $77.00 and set an “outperform” rating for the company in a research note on Thursday, June 4th. JPMorgan Chase & Co. reduced their price objective on Shake Shack from $100.00 to $85.00 and set a “neutral” rating on the stock in a research report on Friday, May 8th. Wall Street Zen cut Shake Shack from a “hold” rating to a “strong sell” rating in a report on Saturday, May 16th. Wolfe Research started coverage on Shake Shack in a research report on Monday, March 9th. They issued an “outperform” rating and a $118.00 target price for the company. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $76.00 target price (down from $115.00) on shares of Shake Shack in a research note on Wednesday, June 3rd. Fifteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Shake Shack has a consensus rating of “Hold” and an average price target of $91.00.

Shake Shack Stock Performance

Shake Shack stock opened at $54.24 on Tuesday. The firm’s fifty day moving average price is $63.12 and its 200-day moving average price is $82.05. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69. The stock has a market cap of $2.32 billion, a P/E ratio of 55.35, a price-to-earnings-growth ratio of 2.44 and a beta of 1.63. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $144.65.

Insider Buying and Selling

In related news, Director Daniel Harris Meyer bought 32,258 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was bought at an average cost of $61.88 per share, for a total transaction of $1,996,125.04. Following the acquisition, the director directly owned 378,670 shares of the company’s stock, valued at $23,432,099.60. The trade was a 9.31% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Robert Lynch acquired 5,000 shares of the stock in a transaction on Friday, May 15th. The stock was bought at an average price of $60.39 per share, with a total value of $301,950.00. Following the transaction, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at approximately $4,701,059.55. The trade was a 6.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 50,616 shares of company stock worth $3,109,782 in the last 90 days. 8.32% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SHAK. Gradient Investments LLC raised its holdings in shares of Shake Shack by 14.3% during the second quarter. Gradient Investments LLC now owns 22,775 shares of the company’s stock valued at $1,276,000 after acquiring an additional 2,858 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in Shake Shack by 602.5% in the second quarter. Assenagon Asset Management S.A. now owns 217,617 shares of the company’s stock valued at $12,191,000 after acquiring an additional 186,641 shares in the last quarter. CoreCap Advisors LLC boosted its holdings in Shake Shack by 181.1% in the second quarter. CoreCap Advisors LLC now owns 1,088 shares of the company’s stock valued at $61,000 after acquiring an additional 701 shares in the last quarter. Bank of America Corp DE increased its position in Shake Shack by 9.3% during the 1st quarter. Bank of America Corp DE now owns 899,013 shares of the company’s stock valued at $79,536,000 after purchasing an additional 76,724 shares during the period. Finally, Amundi increased its position in Shake Shack by 19.8% during the 1st quarter. Amundi now owns 7,626 shares of the company’s stock valued at $675,000 after purchasing an additional 1,261 shares during the period. Hedge funds and other institutional investors own 86.07% of the company’s stock.

Shake Shack News Summary

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

• Negative Sentiment: Zacks Research lowered Shake Shack’s Q1 2027 EPS estimate to $0.07 from $0.13, signaling weaker expected profitability in the near term.
• Negative Sentiment: The firm also trimmed Q2 2027, Q3 2027, Q4 2027, Q1 2028, and Q2 2028 estimates, pointing to a more conservative outlook across several future quarters.
• Negative Sentiment: FY2027 EPS was cut to $1.26 from $1.39, and FY2028 EPS was reduced to $1.68 from $1.81, which may weigh on valuation expectations. SHAK analyst estimate updates
• Neutral Sentiment: Additional media coverage touched on Shake Shack in broader restaurant and consumer-food stories, but these items did not appear to be material stock-moving catalysts. Dairy Queen hires Shake Shack vet to modernize tech

Shake Shack Company Profile

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.