Shake Shack (NYSE:SHAK) Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of Shake Shack (NYSE:SHAK) from a hold rating to a strong sell rating in a research note released on Thursday,Zacks.com reports. Zacks Research also issued estimates for Shake Shack’s Q4 2025 earnings at $0.38 EPS, FY2025 earnings at $1.32 EPS, Q1 2026 earnings at $0.17 EPS, Q2 2026 earnings at $0.50 EPS, Q3 2026 earnings at $0.41 EPS, Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $1.50 EPS, Q1 2027 earnings at $0.29 EPS, Q2 2027 earnings at $0.53 EPS, Q3 2027 earnings at $0.44 EPS, Q4 2027 earnings at $0.54 EPS and FY2027 earnings at $1.80 EPS.

Other equities research analysts have also issued research reports about the company. Deutsche Bank Aktiengesellschaft raised Shake Shack from a “hold” rating to a “buy” rating and set a $105.00 price objective on the stock in a report on Tuesday, January 6th. Truist Financial decreased their price target on Shake Shack from $162.00 to $156.00 and set a “buy” rating on the stock in a research note on Monday, September 29th. Bank of America reiterated an “underperform” rating and issued a $86.00 price objective (down previously from $148.00) on shares of Shake Shack in a research report on Monday, October 6th. The Goldman Sachs Group decreased their target price on shares of Shake Shack from $160.00 to $137.00 and set a “buy” rating on the stock in a research report on Tuesday, September 30th. Finally, Wells Fargo & Company decreased their target price on shares of Shake Shack from $100.00 to $90.00 and set an “equal weight” rating on the stock in a research report on Wednesday, December 17th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $116.52.

Shake Shack Trading Down 1.6%

NYSE:SHAK opened at $99.18 on Thursday. Shake Shack has a 12-month low of $72.93 and a 12-month high of $144.65. The company has a current ratio of 1.84, a quick ratio of 1.81 and a debt-to-equity ratio of 0.46. The stock’s 50 day simple moving average is $86.57 and its 200-day simple moving average is $100.59. The firm has a market cap of $4.23 billion, a P/E ratio of 97.23, a PEG ratio of 2.27 and a beta of 1.68.

Shake Shack (NYSE:SHAK) last issued its quarterly earnings results on Thursday, October 30th. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.05. The firm had revenue of $367.41 million during the quarter, compared to the consensus estimate of $363.69 million. Shake Shack had a return on equity of 10.43% and a net margin of 3.10%.The company’s revenue for the quarter was up 15.9% on a year-over-year basis. During the same period last year, the company earned $0.25 earnings per share. Equities analysts anticipate that Shake Shack will post 1.26 EPS for the current year.

Insider Buying and Selling

In other news, insider Stephanie Ann Sentell sold 1,100 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $85.14, for a total value of $93,654.00. Following the completion of the transaction, the insider directly owned 9,907 shares of the company’s stock, valued at $843,481.98. The trade was a 9.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 8.50% of the company’s stock.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors have recently modified their holdings of SHAK. Geneos Wealth Management Inc. acquired a new position in Shake Shack in the 1st quarter valued at $26,000. Ameritas Advisory Services LLC purchased a new stake in shares of Shake Shack in the second quarter valued at $31,000. Global Retirement Partners LLC increased its stake in Shake Shack by 83.7% in the third quarter. Global Retirement Partners LLC now owns 327 shares of the company’s stock valued at $31,000 after purchasing an additional 149 shares during the last quarter. Parallel Advisors LLC lifted its position in Shake Shack by 679.4% during the second quarter. Parallel Advisors LLC now owns 265 shares of the company’s stock worth $37,000 after buying an additional 231 shares during the period. Finally, Murphy & Mullick Capital Management Corp boosted its stake in Shake Shack by 68.5% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company’s stock worth $38,000 after buying an additional 170 shares during the last quarter. Institutional investors and hedge funds own 86.07% of the company’s stock.

Key Stories Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Shake Shack confirmed a first Louisville location at Oxmoor Center as part of an expansion across Kentucky, highlighting ongoing unit growth in the region. Shake Shack coming to east Louisville as brand grows in Kentucky
• Positive Sentiment: Shake Shack announced additional unit openings, including a new Kentwood location slated for 2027 and a new restaurant in Union, NJ — continued unit rollouts can support long‑term revenue and brand penetration. Shake Shack announces new Kentwood location opening in 2027
• Positive Sentiment: A bullish thesis circulated (summarized by InsiderMonkey) arguing that Shake Shack’s growth runway, unit economics and brand premium justify upside versus current multiples — this type of investor commentary can support positive sentiment among growth‑oriented holders. Shake Shack Inc. (SHAK): A Bull Case Theory
• Neutral Sentiment: Market commentary noting the stock moved higher earlier in the session provides context on intraday drivers and recap of recent results and drivers, but contains no new company guidance. Use it for color on short‑term flows. Shake Shack (SHAK) Stock Is Up, What You Need To Know
• Negative Sentiment: Zacks Research cut multiple quarterly and annual EPS estimates (several Qs plus FY2026–FY2027), reducing FY2027 expectations notably — analyst downgrades to near‑term earnings increase downside risk to the stock until results or guidance prove otherwise. MarketBeat SHAK overview (Zacks estimate notes)

Shake Shack Company Profile

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.