Shake Shack Inc (NYSE:SHAK) stock is up 2% to trade at $89.89 at last check, after an upgrade at Loop Capital to "buy" from "hold.
Shake Shack's stock has dropped 33% YTD due to tariff concerns, presenting a buying opportunity with a 20% margin of safety. Despite macroeconomic challenges, Shake Shack's strong unit growth, improving margins, and compelling valuation suggest a favorable risk-reward ratio. The stock is trading at a discount compared to fast-casual peers, with potential upside of approximately 25% and Wall Street targets indicating even greater potential.
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SHAK benefits from strong growth prospects, strategic initiatives and robust same-shack sales performance.
Shake Shack (SHAK) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
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Shake Shack is currently priced to perfection at $110s, struggling to break through the $120s-$130s resistance after a 92% YTD gain. Despite strong earnings and growth, Shake Shack's premium positioning may limit its expansion to 1,500 locations, especially in suburban areas. I recommend holding Shake Shack stock, with a potential buy in the low $100s or high $90s, and a sell if it nears $130s.
Shake Shak's fourth-quarter fiscal 2024 results reflect benefits from unit growth and sales volume. Read on to unravel the factors defining the quarter.
While the top- and bottom-line numbers for Shake Shack (SHAK) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Shake Shack Inc. (NYSE:SHAK ) Q4 2024 Earnings Conference Call February 20, 2025 8:00 AM ET Company Participants Michael Oriolo - Vice President, FP&A & IR Rob Lynch - CEO Katie Fogertey - CFO Conference Call Participants Michael Tamas - Oppenheimer & Company Christine Cho - Goldman Sachs Brian Vaccaro - Raymond James Jeffrey Bernstein - Barclays Sharon Zackfia - William Blair Brian Mullan - Piper Sandler Andrew Charles - TD Cowen Peter Saleh - BTIG Brian Harbour - Morgan Stanley Jake Bartlett - Truist Securities Lauren Silberman - Deutsche Bank David Tarantino - Baird Andy Barish - Jefferies Jeff Farmer - Gordon Haskett Jim Sanderson - Northcoast Research Rahul Krotthapalli - JPMorgan Operator Greetings. Welcome to Shake Shack's Fourth Quarter 2024 Earnings Call.
Shake Shack capitalizes on liquidity after expanding its footprint with 43 new restaurants, driving strong revenue growth. Inflation narrows price gaps between QSRs and fast-casual dining, enhancing Shake Shack's value proposition and boosting consumer demand for its premium offerings. With stable cash levels and manageable debt, Shake Shack is well-positioned to sustain growth and finance expansion, targeting 1,500 company-operated restaurants.
Shares of Shake Shack (SHAK) surged Thursday morning after the company's fourth-quarter earnings topped estimates.