Forecasting The Future: 14 Analyst Projections For Shake Shack
Providing a diverse range of perspectives from bullish to bearish, 14 analysts have published ratings on Shake Shack (NYSE:SHAK) in the last three months.
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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 2 | 6 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 2 | 2 | 3 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 1 | 0 |
| 3M Ago | 2 | 0 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $112.79, a high estimate of $154.00, and a low estimate of $85.00. A decline of 10.78% from the prior average price target is evident in the current average.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive Shake Shack. The following summary 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 |
|---|---|---|---|---|---|
| David Tarantino | Baird | Raises | Neutral | $90.00 | $85.00 |
| Andrew Charles | TD Securities | Maintains | Buy | $105.00 | $105.00 |
| Dennis Geiger | UBS | Lowers | Neutral | $100.00 | $140.00 |
| Jeffrey Bernstein | Barclays | Lowers | Overweight | $100.00 | $155.00 |
| Jake Bartlett | Truist Securities | Lowers | Buy | $131.00 | $154.00 |
| Chris O'Cull | Stifel | Lowers | Hold | $97.00 | $120.00 |
| 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 |
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: Analysts provide insights into price targets, offering estimates for the future value of Shake Shack's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Shake Shack's market position. Stay informed and make well-judged 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.
Unraveling the Financial Story of Shake Shack
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.65%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Shake Shack's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.88%, the company may encounter challenges in delivering 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.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.