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

November 10, 2016 9:05 AM EST
Get Alerts SHAK Hot Sheet
Price: $34.62 -0.4%

Rating Summary:
    3 Buy, 6 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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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.

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