J.P. Morgan analyst Rahul Krotthapalli maintained a Hold rating on Shake Shack today and set a price target of $90.00.
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Rahul Krotthapalli has given his Hold rating due to a combination of factors related to Shake Shack’s evolving business model and current valuation. After extensive discussions with the CEO, he recognizes that the company is transitioning from a premium, hospitality-centric concept toward a more efficiency-driven, quick-service-influenced operator that generates positive free cash flow. He views the new strategic framework around operations, assets, supply chain, innovation, and sales as directionally encouraging, and sees additional upside potential from the planned launch of a loyalty program in early 2026, which should lift digital engagement and improve marketing productivity.
At the same time, he remains cautious on certain strategic and execution risks and therefore incorporates conservative assumptions into his long-term store growth and profitability outlook, including moderating average unit volumes as the brand expands beyond its highest-performing urban markets. The recent share price decline from prior peaks has brought the stock closer to his fundamental view, leading him to lift his rating from Underweight to Neutral rather than to a more bullish stance. His $90 December 2026 price target, based on a 1,000-store opportunity and an implied EBITDA multiple that he views as fair, suggests limited upside from current levels and supports maintaining a Hold recommendation.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $90.00 price target.