Jefferies Reiterates Hold on Shake Shack (SHAK) Following Solid 3Q

November 10, 2016 9:05 AM EST
Get Alerts SHAK Hot Sheet
Price: $35.80 -1.02%

Rating Summary:
    4 Buy, 5 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
Trade SHAK Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Jefferies reiterated a Hold rating on Shake Shack (NYSE: SHAK), and raised the price target to $38.00 (from $36.00), following the company's 3Q earnings report. SHAK reported EPS of $0.15, a penny above the consensus estimates. RLM missed consensus by 70 bps on in-line food costs and higher labor.

Analyst Andy Barish commented, "Solid 3Q EPS of $0.15, a penny above us/cons with slightly lower rest level margins of 28.8%, showed growth of 25% y-o-y. Nevertheless, with SSS at "just" 2.9% (on top of 17.1%) there is lessening likelihood of significant upside surprises from here with increasing labor/G&A investment. Guide for '17 appears robust on top-line. We raise estimates and our $36 PT back to $38 (lowered after 2Q), which assumes ~25x '17E EV/EBITDA."

For an analyst ratings summary and ratings history on Shake Shack click here. For more ratings news on Shake Shack click here.

Shares of Shake Shack closed at $33.26 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co, Earnings

Add Your Comment