William Blair analyst Sharon Zackfia has maintained their bullish stance on SHAK stock, giving a Buy rating on September 17.
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Sharon Zackfia has given her Buy rating due to a combination of factors that highlight Shake Shack’s potential for growth and profitability. The company’s leadership, as demonstrated by CEO Rob Lynch and CFO Katie Fogertey, has expressed strong confidence in their ability to drive comparable sales, expand the number of units, and improve margins. Despite recent declines in the stock price, Zackfia believes that Shake Shack is well-positioned to achieve its 19th consecutive quarter of positive comparable sales and expects over 20% growth in adjusted EBITDA for the year.
Furthermore, Zackfia sees potential catalysts for future growth, including increased advertising spend, enhancements in service speed, and menu innovations. The long-term growth prospects for Shake Shack are considered robust and among the most promising in the emerging restaurant sector. However, Zackfia does acknowledge risks such as potential volatility in same-store sales, geographic concentration in New York City, fluctuations in commodity costs, wage inflation pressures, and operational challenges.
According to TipRanks, Zackfia is a 4-star analyst with an average return of 8.9% and a 48.31% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Birkenstock Holding plc, and Lululemon Athletica.