BTIG downgraded Shake Shack (SHAK) to Neutral from Buy following a breach of the firm’s now-removed $125 price target While the firm continues to believe that the company has plenty of margin expansion opportunities, it is less confident that guest frequency will accelerate in the current environment. Furthermore, the firm believes it will be more challenging to isolate the factors that are accretive and those that are dilutive given all the changes management is or is planning to implement, including increased advertising, accelerated limited-time-only frequency, menu innovation, loyalty, faster unit development and drive-thru deployment, the analyst tells investors.
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