Jefferies Reiterates Hold on Shake Shack (SHAK) Following Solid 3Q
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium 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."
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
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
- Mizuho Securities Cuts Price Target on Express (EXPR) Following 3Q Miss
- Jefferies Cuts Price Target on Dollar General (DG) Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!