financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Reiterates Buy Opinion On Shares Of Shake Shack Inc
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Reiterates Buy Opinion On Shares Of Shake Shack Inc
Aug 4, 2025 10:04 AM

01:00 PM EDT, 08/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $7 to $138, applying an EV/EBITDA multiple of 25x to our 2026 estimate, in line with its three-year historical average multiple. We lower our 2025 EPS estimate to $1.39 from $1.51 and lower 2026's to $1.79 from $2.03. Our new estimates reflect lower comparable sales growth due to industry-wide pressure on traffic along with management's decision to implement less pricing. Our estimates also reflect higher food cost inflation, particularly in beef. Despite this, we view SHAK as having one of the better fundamental performances in 2025, where industry-wide comparable sales broadly weakened, particularly in the United States. We reiterate our Buy opinion, as store growth is accelerating (+33 in 2026 vs. +31 in 2025 YTD) with revenue growth in the mid-teens (on track with 3Y financial targets), and labor productivity (labor costs -262 bps Y/Y) is driving EBITDA margin expansion, making the compression in SHAK's multiple to 20x 2026 EV/EBITDA overly pessimistic, in our view.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Research Alert: CFRA Keeps Sell Opinion On Shares Of Hologic, Inc.
Research Alert: CFRA Keeps Sell Opinion On Shares Of Hologic, Inc.
May 26, 2025
04:00 PM EDT, 05/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target by $10 to $45, 10.7x our FY 25 (Sep.) EPS estimate, a discount to HOLX's historical forward average due to softness in the Breast Health...
Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Arch Capital Group Ltd.
Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Arch Capital Group Ltd.
May 26, 2025
02:25 AM EDT, 05/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target price of $110, valuing ACGL shares at 11x our 2026 operating EPS estimate of $9.90 and at 13.6x our 2025 EPS estimate of $8.06 (raised...
Research Alert: CFRA Maintains Hold Opinion On Shares Of Toromont Industries Ltd.
Research Alert: CFRA Maintains Hold Opinion On Shares Of Toromont Industries Ltd.
May 26, 2025
12:45 AM EDT, 05/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We maintain our Hold rating and 12-month target price of CAD118, as mixed earnings reflected the tariff impacted markets environment. Our target price is based on an average of our...
What is a reverse mortgage?
What is a reverse mortgage?
May 26, 2025
Key takeaways A reverse mortgage allows homeowners who are 55 and older to tap their home's equity for tax-free payments. The loan comes due when you no longer live in the home, either because you move or pass away. To qualify, you must own or have nearly paid off your home, live in the home as your primary residence, and...
Copyright 2023-2025 - www.financetom.com All Rights Reserved