Market Overview

Shake Shack Stock Heats Up Following ICR Presentation, Bullish Goldman Comments

Shake Shack Stock Heats Up Following ICR Presentation, Bullish Goldman Comments

Goldman Sachs analysts attended Shake Shack Inc's (NYSE: SHAK) presentation at the ICR Conference and left "with more comfort" across several key areas of investor debate.

The Shake Shack Analyst

Katherine Fogertey maintains a Buy rating on Shake Shack's stock with a $115 price target.

The Shake Shack Thesis

Shake Shack kicked off a delivery partnership with GrubHub Inc (NYSE: GRUB) in mid-November before switching to an exclusive partnership, Fogertey said in a Tuesday note. (See her track record here.)

During Shake Shack's presentation at the conference, execs said the company recently completed the point-of-sale integration of GrubHub, but so far only 40% of Shake Shack locations have migrated to GrubHub as their sole delivery provider, the analyst said. 

Wall Street estimates assume a "high level of disruption" as the company finishes the transition, Fogertey said. But the company's presentation makes the case the disruption is "more manageable than feared," she said. 

Elsewhere, Shake Shack's menu offering for 2020 looks strong, including the addition of old favorites like the hot chicken sandwich, the analyst said.

Some investors expressed concerns that chicken nuggets would be removed from the menu due to operational complexity and costs, but they're staying on, according to Goldman Sachs. 

Shake Shack's commentary suggests nuggets will be a permanent menu item, signaling the restaurant chain "made progress" in figuring out the economics around the item, Fogertey said.

The Veggie Shackburger is being tested in New York and could expand to other limited test markets this year, the analyst said. 

Shake Shack Price Action

Shares of Shake Shack were trading higher by 8.27% to $69.40 at the time of publication Wednesday.

Related Links:

Shake Shack Falls Despite Q3 Earnings Beat

Baird's Positive Long-Term View On Shake Shack Tempered By Near-Term Concerns

Photo courtesy of Shake Shack. 

Latest Ratings for SHAK

Jan 2020MaintainsBuy
Jan 2020ReiteratesBuy
Jan 2020Initiates Coverage OnUnderperform

View More Analyst Ratings for SHAK
View the Latest Analyst Ratings

Posted-In: Burgers Goldman SachsAnalyst Color Price Target Reiteration Restaurants Analyst Ratings General Best of Benzinga


Related Articles (GRUB + SHAK)

View Comments and Join the Discussion!

Latest Ratings

CSFLStephens & Co.Downgrades
SALDA DavidsonMaintains44.0
LRNSidoti & Co.Maintains30.0
CSWISidoti & Co.Maintains72.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at