In a report released today, Andrew Charles from TD Cowen maintained a Hold rating on Shake Shack, with a price target of $100.00.
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Andrew Charles has given his Hold rating due to a combination of factors affecting Shake Shack’s financial outlook. The company is facing industry challenges, particularly in balancing its premium brand image with the need to offer value in a slowing market. This is compounded by rising beef costs, which make up a significant portion of their cost of goods sold, necessitating price adjustments that could affect consumer perception.
Furthermore, while Shake Shack is making strides in marketing and menu innovation, these efforts have mixed results and place pressure on future earnings projections. The company’s recent sales strategies, including in-app discounts, have shown some promise in increasing traffic, but there is concern about the long-term impact on brand value and sales mix. Additionally, increased general and administrative expenses have led to a downward revision of adjusted EBITDA estimates for 2025 and 2026, further supporting the Hold recommendation.
According to TipRanks, Charles is a 4-star analyst with an average return of 7.6% and a 50.74% success rate. Charles covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, CAVA Group, Inc., and Starbucks.
In another report released on October 23, UBS also maintained a Hold rating on the stock with a $104.00 price target.