Is Shake Shack Stock a Good Investment?
Shake Shack Investment Advice | SHAK |
- Examine Shake Shack's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Shake Shack's leadership team and their track record. Good management can help Shake Shack navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotels, Restaurants & Leisure space and any emerging trends that could impact Shake Shack's business and its evolving consumer preferences.
- Compare Shake Shack's performance and market position to its competitors. Analyze how Shake Shack is positioned in terms of product offerings, innovation, and market share.
- Check if Shake Shack pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Shake Shack's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Shake Shack stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Shake Shack is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Shake Shack Stock
Researching Shake Shack's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 95.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.55. Shake Shack had not issued any dividends in recent years.
To determine if Shake Shack is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Shake Shack's research are outlined below:
| Shake Shack generated a negative expected return over the last 90 days | |
| Shake Shack has high historical volatility and very poor performance | |
| Over 95.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Shake Shack Stock Tanks 31 percent in a Month Golden Buying Opportunity |
Shake Shack Quarterly Liabilities And Stockholders Equity |
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Shake Shack uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Shake Shack. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Shake Shack's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Shake Shack's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Shake Shack's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-02-15 | 2023-12-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2021-11-04 | 2021-09-30 | -0.06 | -0.05 | 0.01 | 16 | ||
2020-05-04 | 2020-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2016-03-07 | 2015-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2022-08-04 | 2022-06-30 | -0.02 | -0.0303 | -0.0103 | 51 | ||
2017-11-01 | 2017-09-30 | 0.15 | 0.17 | 0.02 | 13 | ||
2017-05-04 | 2017-03-31 | 0.08 | 0.1 | 0.02 | 25 | ||
2024-05-02 | 2024-03-31 | 0.1 | 0.13 | 0.03 | 30 |
Shake Shack Target Price Consensus
Shake target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Shake Shack's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 23 | Buy |
Most Shake analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Shake stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Shake Shack, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationShake Shack Target Price Projection
Shake Shack's current and average target prices are 89.41 and 135.32, respectively. The current price of Shake Shack is the price at which Shake Shack is currently trading. On the other hand, Shake Shack's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Shake Shack Market Quote on 21st of March 2025
Target Price
Analyst Consensus On Shake Shack Target Price
Shake Shack Analyst Ratings
Shake Shack's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Shake Shack stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Shake Shack's financials, market performance, and future outlook by experienced professionals. Shake Shack's historical ratings below, therefore, can serve as a valuable tool for investors.Know Shake Shack's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Shake Shack is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Shake Shack backward and forwards among themselves. Shake Shack's institutional investor refers to the entity that pools money to purchase Shake Shack's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | T. Rowe Price Investment Management,inc. | 2024-12-31 | 728.6 K | Van Berkom And Associates Inc | 2024-12-31 | 660.2 K | Goldman Sachs Group Inc | 2024-12-31 | 598.4 K | Wasatch Advisors Lp | 2024-12-31 | 566.4 K | Driehaus Capital Management Llc | 2024-12-31 | 511.2 K | Ubs Group Ag | 2024-12-31 | 502.1 K | Squarepoint Ops Llc | 2024-12-31 | 500.2 K | Nuveen Asset Management, Llc | 2024-12-31 | 487.5 K | Bnp Paribas Investment Partners Sa | 2024-12-31 | 462.4 K | Blackrock Inc | 2024-12-31 | 6.1 M | Vanguard Group Inc | 2024-12-31 | 4.4 M |
Shake Shack's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.82 B.Market Cap |
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Shake Shack's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.03 | 0.02 | |
| Return On Capital Employed | 0.09 | 0.09 | |
| Return On Assets | 0.03 | 0.02 | |
| Return On Equity | 0.17 | 0.18 |
Determining Shake Shack's profitability involves analyzing its financial statements and using various financial metrics to determine if Shake Shack is a good buy. For example, gross profit margin measures Shake Shack's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Shake Shack's profitability and make more informed investment decisions.
Evaluate Shake Shack's management efficiency
Shake Shack has return on total asset (ROA) of 0.0134 % which means that it generated a profit of $0.0134 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0225 %, meaning that it created $0.0225 on every $100 dollars invested by stockholders. Shake Shack's management efficiency ratios could be used to measure how well Shake Shack manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Shake Shack's Return On Capital Employed is quite stable compared to the past year. Return On Equity is expected to rise to 0.18 this year, although the value of Return On Tangible Assets will most likely fall to 0.02. At this time, Shake Shack's Total Current Liabilities is quite stable compared to the past year. Non Current Liabilities Total is expected to rise to about 1.1 B this year, although the value of Liabilities And Stockholders Equity will most likely fall to about 892.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.12 | 1.07 | |
| Tangible Book Value Per Share | 1.06 | 1.01 | |
| Enterprise Value Over EBITDA | 60.19 | 60.01 | |
| Price Book Value Ratio | 40.91 | 42.96 | |
| Enterprise Value Multiple | 60.19 | 60.01 | |
| Price Fair Value | 40.91 | 42.96 | |
| Enterprise Value | 626.9 M | 557.7 M |
Evaluating the management effectiveness of Shake Shack allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Shake Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.895 |
Basic technical analysis of Shake Stock
As of the 21st of March, Shake Shack has the Coefficient Of Variation of (567.00), variance of 11.4, and Risk Adjusted Performance of (0.15). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Shake Shack, as well as the relationship between them.Shake Shack's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Shake Shack insiders, such as employees or executives, is commonly permitted as long as it does not rely on Shake Shack's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Shake Shack insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Shake Shack's Outstanding Corporate Bonds
Shake Shack issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Shake Shack uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Shake bonds can be classified according to their maturity, which is the date when Shake Shack has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Shake Shack's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Shake Shack's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (0.40) | |||
| Mean Deviation | 2.39 | |||
| Coefficient Of Variation | (567.00) | |||
| Standard Deviation | 3.38 | |||
| Variance | 11.4 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.50) | |||
| Total Risk Alpha | (0.32) | |||
| Treynor Ratio | (0.41) | |||
| Maximum Drawdown | 23.18 | |||
| Value At Risk | (5.33) | |||
| Potential Upside | 5.69 | |||
| Skewness | 0.3545 | |||
| Kurtosis | 3.06 |
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (0.40) | |||
| Mean Deviation | 2.39 | |||
| Coefficient Of Variation | (567.00) | |||
| Standard Deviation | 3.38 | |||
| Variance | 11.4 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.50) | |||
| Total Risk Alpha | (0.32) | |||
| Treynor Ratio | (0.41) | |||
| Maximum Drawdown | 23.18 | |||
| Value At Risk | (5.33) | |||
| Potential Upside | 5.69 | |||
| Skewness | 0.3545 | |||
| Kurtosis | 3.06 |
Consider Shake Shack's intraday indicators
Shake Shack intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Shake Shack stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 89.41 | |||
| Day Typical Price | 89.41 | |||
| Price Action Indicator | (0.62) | |||
| Period Momentum Indicator | (1.23) |
Shake Shack Corporate Filings
F4 | 4th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 21st of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 20th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Shake Stock media impact
Far too much social signal, news, headlines, and media speculation about Shake Shack that are available to investors today. That information is available publicly through Shake media outlets and privately through word of mouth or via Shake internal channels. However, regardless of the origin, that massive amount of Shake data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Shake Shack news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Shake Shack relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Shake Shack's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Shake Shack alpha.
Shake Shack Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Shake Shack can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Shake Shack Historical Investor Sentiment
Investor biases related to Shake Shack's public news can be used to forecast risks associated with an investment in Shake. The trend in average sentiment can be used to explain how an investor holding Shake can time the market purely based on public headlines and social activities around Shake Shack. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Shake Shack's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Shake Shack and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Shake Shack news discussions. The higher the estimate score, the more favorable the investor's outlook on Shake Shack.
Shake Shack Maximum Pain Price Across June 20th 2025 Option Contracts
Shake Shack's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Shake Shack close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Shake Shack's options.
Shake Shack Corporate Directors
| Tristan Walker | Independent Director | Profile | |
| Joshua Silverman | Independent Director | Profile | |
| Jenna Lyons | Independent Director | Profile | |
| Sumaiya Balbale | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shake Shack. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shake Shack. If investors know Shake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shake Shack listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.318 | Earnings Share 0.24 | Revenue Per Share | Quarterly Revenue Growth 0.148 | Return On Assets |
The market value of Shake Shack is measured differently than its book value, which is the value of Shake that is recorded on the company's balance sheet. Investors also form their own opinion of Shake Shack's value that differs from its market value or its book value, called intrinsic value, which is Shake Shack's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shake Shack's market value can be influenced by many factors that don't directly affect Shake Shack's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Shake Shack's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Shake Shack is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shake Shack's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.