Shake Shack (NYSE:SHAK) Sets New 12-Month High on Better-Than-Expected Earnings

Posted by on May 6th, 2023

Shake Shack Inc. (NYSE:SHAK – Get Rating)’s stock price reached a new 52-week high on Friday following a stronger than expected earnings report. The company traded as high as $63.75 and last traded at $62.31, with a volume of 202224 shares trading hands. The stock had previously closed at $61.57.

The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.08. The company had revenue of $253.30 million during the quarter, compared to analysts’ expectations of $245.84 million. Shake Shack had a negative net margin of 2.68% and a negative return on equity of 3.04%. The firm’s revenue for the quarter was up 24.5% on a year-over-year basis. During the same period in the prior year, the business posted ($0.19) earnings per share.

Wall Street Analyst Weigh In

SHAK has been the subject of several recent analyst reports. StockNews.com upgraded shares of Shake Shack from a “sell” rating to a “hold” rating in a research report on Friday, March 24th. Credit Suisse Group increased their target price on shares of Shake Shack from $63.00 to $69.00 and gave the stock a “neutral” rating in a research note on Friday. Barclays increased their target price on shares of Shake Shack from $51.00 to $64.00 in a research note on Friday. Wedbush increased their target price on shares of Shake Shack from $56.00 to $59.00 in a research note on Friday. Finally, BTIG Research raised their price objective on shares of Shake Shack from $65.00 to $75.00 in a research note on Friday. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $61.77.

Institutional Trading of Shake Shack

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in shares of Shake Shack by 1.2% in the 1st quarter. Vanguard Group Inc. now owns 4,071,207 shares of the company’s stock valued at $276,435,000 after acquiring an additional 48,614 shares during the period. State Street Corp increased its holdings in shares of Shake Shack by 1.1% in the 2nd quarter. State Street Corp now owns 1,281,413 shares of the company’s stock valued at $50,590,000 after acquiring an additional 14,267 shares during the period. Marshall Wace LLP increased its holdings in shares of Shake Shack by 634.8% in the 4th quarter. Marshall Wace LLP now owns 1,029,880 shares of the company’s stock valued at $42,771,000 after acquiring an additional 889,714 shares during the period. Balyasny Asset Management LLC increased its holdings in shares of Shake Shack by 61.8% in the 3rd quarter. Balyasny Asset Management LLC now owns 821,070 shares of the company’s stock valued at $36,932,000 after acquiring an additional 313,623 shares during the period. Finally, Geode Capital Management LLC increased its holdings in shares of Shake Shack by 3.0% in the 4th quarter. Geode Capital Management LLC now owns 662,444 shares of the company’s stock valued at $27,511,000 after acquiring an additional 19,062 shares during the period. Institutional investors and hedge funds own 83.55% of the company’s stock.

Shake Shack Stock Up 6.4 %

The business’s fifty day moving average price is $55.63 and its 200 day moving average price is $52.81. The company has a current ratio of 2.33, a quick ratio of 2.30 and a debt-to-equity ratio of 0.58. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of -107.43 and a beta of 1.69.

About Shake Shack

(Get Rating)

Shake Shack, Inc engages in the operation and licensing of Shake Shack restaurants which serve burgers, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and more. The company was founded by Daniel Harris Meyer on September 23, 2014 and is headquartered in New York, NY.

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