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Shake Shack downgraded to Hold from Buy at TD Cowen

TD Cowen analyst Andrew Charles downgraded Shake Shack (SHAK) to Hold from Buy with an unchanged price target of $105. The shares now trade in excess of the three-year average and the “challenged” restaurant spending backdrop will limit further multiple expansion, particularly in the “crowded burger category where the concept lacks category leadership,” the analyst tells investors in a research note. Further, TD believes Shake Shack’s margin story has materialized, limiting the magnitude of future positive adjusted EBITDA revisions.

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