Shake Shack (NYSE:SHAK) Shares Gap Up on Strong Earnings

Shake Shack, Inc. (NYSE:SHAK) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $92.13, but opened at $104.41. Shake Shack shares last traded at $101.8090, with a volume of 945,357 shares traded.

The company reported $0.37 EPS for the quarter, beating the consensus estimate of $0.35 by $0.02. The company had revenue of $400.53 million for the quarter, compared to analyst estimates of $402.06 million. Shake Shack had a return on equity of 10.43% and a net margin of 3.10%.The firm’s revenue for the quarter was up 21.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.26 EPS.

More Shake Shack News

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

• Positive Sentiment: Q4 earnings beat and accelerating revenue — SHA K reported $0.37 EPS (above consensus) and revenue up 21.8% year‑over‑year, with management saying operational gains helped sustain margins. This drove the immediate positive market reaction. Shake Shack Inc (SHAK) Q4 2025 Earnings Call Highlights
• Positive Sentiment: 2026 growth and margin targets — management plans 55–60 new Shacks in 2026 and is targeting margin expansion alongside sustained comp sales gains, signaling clear unit growth and profitability initiatives. Shake Shack outlines 2026 growth strategy
• Positive Sentiment: Operational improvements cited as a driver — company commentary and coverage highlight efficiency gains and promotional strategies that supported traffic and margins during 2025. That gives visibility into sustainable unit economics if execution continues. Operational improvements lead to robust 2025 for Shake Shack
• Positive Sentiment: Management continuity — the company named Peter Herpich interim principal financial officer, which reduces near‑term governance risk around the finance role. Shake Shack names Peter Herpich interim principal financial officer
• Neutral Sentiment: Local expansion update — openings such as the first Georgia drive‑thru are incremental growth proof points but unlikely to move near‑term results materially. Shake Shack opening its first Georgia drive-thru
• Negative Sentiment: Revenue slightly missed and Q1 guide soft — Q4 revenue ($400.53M) was a small miss versus estimates and Q1 2026 revenue guidance ($366–370M) came in just under consensus, which tempers the upside from the EPS beat. Shake Shack Q4 release / transcript
• Negative Sentiment: Input‑cost pressure — coverage notes Shake Shack is absorbing higher beef costs and offsetting with promotions and menu tweaks; continued commodity pressure could compress margins if price/mix actions prove insufficient. Shake Shack absorbs higher beef prices

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the stock. Piper Sandler decreased their price target on shares of Shake Shack from $126.00 to $102.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. JPMorgan Chase & Co. raised shares of Shake Shack from an “underweight” rating to a “neutral” rating and cut their price objective for the stock from $95.00 to $90.00 in a research report on Thursday, December 18th. Barclays decreased their target price on Shake Shack from $115.00 to $110.00 and set an “overweight” rating for the company in a research report on Wednesday, January 7th. Deutsche Bank Aktiengesellschaft raised Shake Shack from a “hold” rating to a “buy” rating and set a $105.00 price target on the stock in a research note on Tuesday, January 6th. Finally, Robert W. Baird reduced their price objective on Shake Shack from $127.00 to $104.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Shake Shack currently has an average rating of “Hold” and a consensus target price of $116.10.

Institutional Trading of Shake Shack

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC bought a new position in shares of Shake Shack in the fourth quarter valued at approximately $25,000. Geneos Wealth Management Inc. bought a new position in Shake Shack during the 1st quarter valued at $26,000. Assetmark Inc. lifted its stake in Shake Shack by 457.6% during the 4th quarter. Assetmark Inc. now owns 368 shares of the company’s stock valued at $30,000 after acquiring an additional 302 shares in the last quarter. Global Retirement Partners LLC boosted its holdings in Shake Shack by 83.7% during the 3rd quarter. Global Retirement Partners LLC now owns 327 shares of the company’s stock worth $31,000 after acquiring an additional 149 shares during the last quarter. Finally, UMB Bank n.a. grew its stake in shares of Shake Shack by 42.2% in the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after acquiring an additional 116 shares in the last quarter. 86.07% of the stock is owned by institutional investors.

Shake Shack Stock Performance

The company’s fifty day moving average price is $90.91 and its 200 day moving average price is $92.90. The company has a market cap of $4.22 billion, a PE ratio of 96.83, a P/E/G ratio of 2.86 and a beta of 1.75. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.84 and a quick ratio of 1.81.

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.