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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Shake Shack Inc
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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.

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