Analysts' ratings for Shake Shack SHAK over the last quarter vary from bullish to bearish, as provided by 17 analysts.
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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 4 | 6 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 2 | 2 | 0 | 0 | 0 |
| 2M Ago | 2 | 2 | 6 | 1 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Shake Shack, revealing an average target of $106.06, a high estimate of $125.00, and a low estimate of $80.00. Witnessing a positive shift, the current average has risen by 21.61% from the previous average price target of $87.21.
Diving into Analyst Ratings: An In-Depth Exploration
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Andrew Charles | TD Cowen | Maintains | Buy | $125.00 | - |
| Jake Bartlett | Truist Securities | Raises | Buy | $115.00 | $112.00 |
| Brian Bittner | Oppenheimer | Raises | Outperform | $120.00 | $108.00 |
| Andrew Charles | TD Cowen | Maintains | Outperform | $125.00 | - |
| Peter Saleh | BTIG | Raises | Buy | $120.00 | $110.00 |
| Andrew Charles | TD Cowen | Raises | Outperform | $125.00 | $91.00 |
| John Ivankoe | JP Morgan | Raises | Underweight | $100.00 | $65.00 |
| Dennis Geiger | UBS | Raises | Neutral | $110.00 | $88.00 |
| Brian Vaccaro | Raymond James | Raises | Strong Buy | $115.00 | $90.00 |
| Michael Tamas | Oppenheimer | Raises | Outperform | $108.00 | $80.00 |
| Jake Bartlett | Truist Securities | Raises | Buy | $112.00 | $90.00 |
| Nick Setyan | Wedbush | Raises | Neutral | $100.00 | $80.00 |
| Andrew Charles | TD Cowen | Raises | Market Perform | $91.00 | $73.00 |
| Nick Setyan | Wedbush | Maintains | Neutral | $80.00 | - |
| David Tarantino | Baird | Raises | Neutral | $82.00 | $67.00 |
| Dennis Geiger | UBS | Raises | Neutral | $88.00 | $80.00 |
| Jake Bartlett | Truist Securities | Maintains | Buy | $87.00 | $87.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Shake Shack. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Shake Shack compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Shake Shack's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
To gain a panoramic view of Shake Shack's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Shake Shack analyst ratings.
Get to Know Shake Shack Better
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.
Shake Shack's Financial Performance
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Shake Shack displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 20.0%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.52%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Shake Shack's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.68%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Shake Shack's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.46%, the company may face hurdles in achieving optimal financial returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.74.
How Are Analyst Ratings Determined?
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.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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