Wedbush Issues Optimistic Estimate for Shake Shack Earnings

Shake Shack Inc. (NYSE:SHAK) – Investment analysts at Wedbush lifted their FY2024 earnings per share (EPS) estimates for shares of Shake Shack in a report issued on Thursday, October 31st. Wedbush analyst N. Setyan now expects that the company will earn $0.80 per share for the year, up from their prior forecast of $0.74. Wedbush currently has a “Neutral” rating and a $90.00 target price on the stock. The consensus estimate for Shake Shack’s current full-year earnings is $0.74 per share. Wedbush also issued estimates for Shake Shack’s Q4 2024 earnings at $0.15 EPS, Q1 2025 earnings at $0.26 EPS, Q2 2025 earnings at $0.36 EPS, Q3 2025 earnings at $0.36 EPS, Q4 2025 earnings at $0.24 EPS and FY2025 earnings at $1.21 EPS.

Shake Shack (NYSE:SHAK) last issued its earnings results on Wednesday, October 30th. The company reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.05. The company had revenue of $316.92 million for the quarter, compared to the consensus estimate of $316.03 million. Shake Shack had a return on equity of 6.28% and a net margin of 0.68%. The firm’s quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.17 EPS.

A number of other equities analysts also recently weighed in on the company. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $102.00 target price (down previously from $105.00) on shares of Shake Shack in a report on Tuesday, September 24th. TD Cowen reissued a “buy” rating and issued a $125.00 price target on shares of Shake Shack in a research note on Wednesday, September 18th. The Goldman Sachs Group boosted their price target on Shake Shack from $110.00 to $125.00 and gave the company a “buy” rating in a research note on Friday, August 2nd. Oppenheimer boosted their price target on Shake Shack from $122.00 to $135.00 and gave the company an “outperform” rating in a research note on Monday, October 28th. Finally, Robert W. Baird boosted their price target on Shake Shack from $93.00 to $105.00 and gave the company a “neutral” rating in a research note on Friday, August 2nd. Two research analysts have rated the stock with a sell rating, ten have given a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $110.00.

Shake Shack Price Performance

Shares of SHAK opened at $124.10 on Friday. The company has a market capitalization of $5.27 billion, a price-to-earnings ratio of 728.76, a P/E/G ratio of 3.58 and a beta of 1.83. Shake Shack has a fifty-two week low of $54.06 and a fifty-two week high of $130.20. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.01 and a quick ratio of 2.03. The business’s 50-day moving average is $105.87 and its 200-day moving average is $98.65.

Insiders Place Their Bets

In other news, CFO Katherine Irene Fogertey sold 321 shares of the company’s stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $95.10, for a total transaction of $30,527.10. Following the completion of the transaction, the chief financial officer now directly owns 37,143 shares in the company, valued at $3,532,299.30. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, CFO Katherine Irene Fogertey sold 321 shares of the company’s stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $95.10, for a total transaction of $30,527.10. Following the completion of the transaction, the chief financial officer now directly owns 37,143 shares in the company, valued at $3,532,299.30. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Daniel Harris Meyer sold 22,691 shares of the company’s stock in a transaction that occurred on Wednesday, October 30th. The stock was sold at an average price of $124.47, for a total value of $2,824,348.77. Following the transaction, the director now owns 437,646 shares of the company’s stock, valued at approximately $54,473,797.62. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 44,058 shares of company stock valued at $5,161,562 over the last 90 days. 9.73% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Allspring Global Investments Holdings LLC acquired a new position in shares of Shake Shack in the first quarter valued at $25,000. Quest Partners LLC acquired a new position in shares of Shake Shack in the second quarter valued at $38,000. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Shake Shack in the third quarter valued at $41,000. Kimelman & Baird LLC acquired a new position in shares of Shake Shack in the second quarter valued at $45,000. Finally, Covestor Ltd raised its stake in shares of Shake Shack by 32,150.0% in the first quarter. Covestor Ltd now owns 645 shares of the company’s stock valued at $67,000 after purchasing an additional 643 shares in the last quarter. 86.07% of the stock is currently owned by institutional investors and hedge funds.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.