Truist Financial analyst Jake Bartlett maintains $Shake Shack (SHAK.US)$ with a buy rating, and adjusts the target price from $147 to $149.
According to TipRanks data, the analyst has a success rate of 60.9% and a total average return of 16.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Shake Shack (SHAK.US)$'s main analysts recently are as follows:
The analyst holds an optimistic outlook on the U.S. restaurant sector's sales prospects for 2025, expecting a modest improvement in the U.S. macro backdrop and the industry environment. It is anticipated that margins for many companies will improve in 2025 due to benign food inflation, with traffic being a key variable. However, there are risks such as reduced pricing, ongoing labor inflation, and heightened discounting activity.
The expectation is set for the company to project comp growth in the low single-digit-plus range for 2025, with unit growth anticipated in the mid-teens-plus range. This is likely to support mid teens-plus revenue growth. Given the relatively modest comp compares and the stock's valuation no longer being outsized compared to high growth peers, it is anticipated that the shares will continue to outperform in 2025.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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