Jefferies Reiterates Hold on Shake Shack (SHAK) Following Solid 3Q
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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."
Shares of Shake Shack closed at $33.26 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co, Earnings
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