Barclays analyst Jeff Bernstein upgrades $Shake Shack (SHAK.US)$ to a buy rating, and adjusts the target price from $125 to $159.
According to TipRanks data, the analyst has a success rate of 57.5% and a total average return of 4.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Shake Shack (SHAK.US)$'s main analysts recently are as follows:
UBS maintains a more optimistic view on the U.S. restaurant sector's sales outlook for 2025, anticipating that the U.S. macroeconomic backdrop and industry environment will modestly improve. Many companies are expected to see improved margins by 2025 due to benign food inflation, although traffic remains a key variable. There are risks noted from reduced pricing power, ongoing labor cost inflation, and heightened discounting activities.
The firm anticipates that the company will project comp growth in the low single-digit-plus range by 2025, accompanied by unit growth in the mid-teens-plus range which is expected to support mid teens-plus revenue growth. Given the relatively modest comp comparisons and the stock's valuation which is no longer outsized compared to its high-growth peers, continued outperformance of the shares in 2025 is expected.
Yum! Brands is seen as a large-cap with low current investor enthusiasm, anticipated to show an above-average growth in same-store sales for 2025, positioning its financial model more favorably against its global counterparts. Darden has shown a 16% rise since its last earnings disclosure, with significant catalysts expected to drive performance against easier past comparisons and potentially exceed modest expectations. Shake Shack is perceived to have a new management strategy that could be a significant, yet underappreciated, influence on leveraging unused sales and margin potential.
Note:
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