Shake Shack (SHAK) ICR Meetings Highlight Menu Innovation in 2020 - Credit Suisse

Credit Suisse analyst Lauren Silberman reiterated an Outperform rating and $83.00 price target on Shake Shack (NYSE: SHAK) after meetings at ICR showed that the company expects new menu innovation in 2020, which should help offset SSS volatility expected from the Grubhub delivery transition.

The analyst stated "High beef costs, wage challenges and new unit inefficiencies continue to pressure margins, though improvements in the supply chain, benefits from the ERP system, opens weighted in existing markets and better delivery economics are potential offsets. We also believe the company could look to explore more pricing opportunities in select markets and channels. Sentiment seems to be skewed more negative, with confidence in a stabilization in SSS and margins key to the story".

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 $68.44 yesterday.

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