UPDATE: Loop Capital Starts Shake Shack (SHAK) at Hold

Loop Capital analyst Alton Stump initiates coverage on Shake Shack (NYSE: SHAK) with a Hold rating, PT $80.00.

The analyst comments "Pressure on fast-casual dining sales from a long-standing change in consumer eating habits could be at least partially offset by competitor closings. Despite the reopening of markets over the course of 1H21, at-home versus eating out trends did not return to anywhere near pre-pandemic levels, due in large part to a significantly higher percentage of consumers still working from home. Positively, closures among independents and smaller regional restaurant chains provided a meaningful sales lift to larger chains such as Shake Shack during 1H21. Most of these smaller mom-and-pop restaurant locations were operating at significantly lower store-level profitability levels in comparison to SHAK before the pandemic. As pandemic-related government assistance began to dry up in various regions during mid/late 1H21, a portion of these independents were forced to close either temporarily or permanently. The pace of independent competitor closures should continue to accelerate over at least the remainder of 2021, especially post Labor Day when pandemic-related government assistance ended across most of the country."

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 $77.24 yesterday.

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