Shake Shack upgraded to Buy at Northcoast on improved fundamentals

Northcoast analyst Jim Sanderson upgraded Shake Shack to Buy from Neutral with an $85 price target to reflect a more bullish outlook on fundamentals based on recent checks and a review of NCR’s foot traffic index. The firm believes in-store traffic has increased relative to the prior quarter as commuter traffic strengthens and expects this trend to continue this fall as more employees return to traditional commuting patterns. In addition to in-store traffic momentum, Shake Shack is also benefitting from high single-digit price increases, the analyst tells investors.