Shake Shack (SHAK) Testing 3P Price Increase - Credit Suisse

March 1, 2021 6:42 AM EST
Get Alerts SHAK Hot Sheet
Price: $113.23 +0.20%

Rating Summary:
    5 Buy, 15 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 12 | Down: 16 | New: 51
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Credit Suisse analyst Lauren Silberman reiterated a Neutral rating and $102.00 price target on Shake Shack (NYSE: SHAK) after trends took a step back in Feb with SSS of -16% (Suburban -4%, Urban -27%), partially due to weather after posting improvements in Jan, with SSS of -5% (Suburban +8%, Urban -17%). AWS volumes of $62Kwere largely consistent in 4Q, with improvement to $63K in Jan, and a decline to $60K Feb to-date. SHAK reiterated its expectation to open 35-40 company units in 2021 & 45-50 in 2022, representing growth of ~45% over the next two years.

The analyst stated "SHAK is testing a 5% 3P delivery menu price increase to offset headwinds & incentivize customers to transact through its direct digital channels, though margins are likely to remain challenged given sales pressure, a heightened delivery mix and ongoing labor & digital investments. We believe the breadth of new formats, accelerated digital adoption and strong brand affinity well position SHAK to increase its addressable market long-term, though at current valuation, we remain Neutral."

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 $118.48 yesterday.

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