Analyst Expectations For Shake Shack's Future

In the last three months, 17 analysts have published ratings on Shake Shack (NYSE:SHAK), offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $112.06, a high estimate of $145.00, and a low estimate of $85.00. A decline of 7.79% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Shake Shack's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Shake Shack compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Shake Shack's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Shake Shack's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Shake Shack analyst ratings.

Delving into Shake Shack's Background

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.

Understanding the Numbers: Shake Shack's Finances

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: Shake Shack's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 10.46%. This signifies 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: Shake Shack's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.32%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Shake Shack's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.9%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.25%, 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 1.74, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.