William Blair analyst Sharon Zackfia has reiterated their bullish stance on SHAK stock, giving a Buy rating today.
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Sharon Zackfia has given her Buy rating due to a combination of factors that highlight Shake Shack’s strong financial performance and operational improvements. The company exceeded expectations in its second-quarter adjusted earnings per share, driven by better-than-anticipated restaurant-level margins and reduced preopening expenses, general and administrative costs, and depreciation and amortization expenses.
Shake Shack demonstrated consistent growth with its 18th consecutive quarter of positive comparable sales, achieving a 1.8% increase, which aligns with their guidance and market consensus. The company also saw significant growth in the South and West regions, and continued momentum into July with a 3.2% increase in comparable sales. Additionally, Shake Shack achieved its 12th consecutive quarter of year-over-year restaurant-level margin expansion, supported by operational improvements and enhanced scheduling tools, leading to a notable increase in adjusted EBITDA growth.
In another report released today, Barclays also maintained a Buy rating on the stock with a $168.00 price target.