11:08 AM EDT, 10/06/2025 (MT Newswires) -- Shake Shack ( SHAK ) will likely continue to face macro headwinds that could offset tailwinds from product innovation and limit its traffic and same-store sales growth, BofA Securities said in a Monday note.

Apart from softer labor market and weaker consumer spending, the company could also see margin pressure from competition and inflation, the investment firm said, noting the increasing prices of beef, which is Shake Shack's ( SHAK ) biggest commodity input.

BofA Securities also said Shake Shack's ( SHAK ) new unit growth target "may be ambitious" based on its saturation analysis. The company's updated target calls for a total of 1,500 domestic stores, and this will require a national density equivalent to that of New York City, BofA Securities said.

BofA Securities downgraded Shake Shack ( SHAK ) to underperform from neutral, and lowered its price target to $86 from $148.

Shares of Shake Shack ( SHAK ) were down more than 1% in recent trading Monday.

Price: 95.49, Change: -1.30, Percent Change: -1.34