Shake Shack (NYSE:SHAK) Downgraded to Strong Sell Rating by Zacks Research

Shake Shack (NYSE:SHAK) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports. Zacks Research also issued estimates for Shake Shack’s Q4 2025 earnings at $0.38 EPS, FY2025 earnings at $1.32 EPS, Q1 2026 earnings at $0.17 EPS, Q2 2026 earnings at $0.50 EPS, Q3 2026 earnings at $0.41 EPS, Q4 2026 earnings at $0.42 EPS, FY2026 earnings at $1.50 EPS, Q1 2027 earnings at $0.29 EPS, Q2 2027 earnings at $0.53 EPS, Q3 2027 earnings at $0.44 EPS, Q4 2027 earnings at $0.54 EPS and FY2027 earnings at $1.80 EPS.

SHAK has been the subject of a number of other reports. Jefferies Financial Group restated a “hold” rating on shares of Shake Shack in a research note on Tuesday, November 25th. Barclays cut their price objective on Shake Shack from $115.00 to $110.00 and set an “overweight” rating for the company in a report on Wednesday, January 7th. UBS Group lowered their target price on shares of Shake Shack from $140.00 to $104.00 and set a “neutral” rating on the stock in a report on Thursday, October 23rd. Piper Sandler dropped their price target on shares of Shake Shack from $126.00 to $102.00 and set a “neutral” rating on the stock in a research report on Friday, October 31st. Finally, Raymond James Financial reiterated a “strong-buy” rating on shares of Shake Shack in a research note on Tuesday, November 25th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $116.52.

Shake Shack Trading Down 1.6%

Shares of NYSE:SHAK opened at $99.18 on Thursday. The company’s 50-day moving average price is $86.57 and its two-hundred day moving average price is $100.86. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.84 and a quick ratio of 1.81. Shake Shack has a one year low of $72.93 and a one year high of $144.65. The stock has a market capitalization of $4.23 billion, a PE ratio of 97.23, a price-to-earnings-growth ratio of 2.31 and a beta of 1.68.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings data on Thursday, October 30th. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.05. The company had revenue of $367.41 million during the quarter, compared to analysts’ expectations of $363.69 million. Shake Shack had a return on equity of 10.43% and a net margin of 3.10%.Shake Shack’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.25 EPS. On average, equities analysts forecast that Shake Shack will post 1.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other Shake Shack news, insider Stephanie Ann Sentell sold 1,100 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $85.14, for a total transaction of $93,654.00. Following the completion of the sale, the insider owned 9,907 shares of the company’s stock, valued at $843,481.98. This trade represents a 9.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 8.50% of the company’s stock.

Hedge Funds Weigh In On Shake Shack

Several large investors have recently modified their holdings of SHAK. Cooper Investors PTY Ltd. bought a new stake in shares of Shake Shack during the 4th quarter worth about $5,205,000. Wealthcare Advisory Partners LLC lifted its position in Shake Shack by 15.9% during the fourth quarter. Wealthcare Advisory Partners LLC now owns 15,645 shares of the company’s stock worth $1,270,000 after acquiring an additional 2,150 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Shake Shack by 1,730.5% during the fourth quarter. Assenagon Asset Management S.A. now owns 221,635 shares of the company’s stock worth $17,990,000 after acquiring an additional 209,527 shares during the period. Harbor Investment Advisory LLC boosted its holdings in shares of Shake Shack by 98.2% during the fourth quarter. Harbor Investment Advisory LLC now owns 3,875 shares of the company’s stock worth $315,000 after acquiring an additional 1,920 shares during the period. Finally, CIBC Private Wealth Group LLC grew its position in shares of Shake Shack by 100.3% in the third quarter. CIBC Private Wealth Group LLC now owns 3,165 shares of the company’s stock valued at $296,000 after purchasing an additional 1,585 shares during the last quarter. 86.07% of the stock is owned by institutional investors.

More Shake Shack News

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Shake Shack confirmed a first Louisville location at Oxmoor Center as part of an expansion across Kentucky, highlighting ongoing unit growth in the region. Shake Shack coming to east Louisville as brand grows in Kentucky
• Positive Sentiment: Shake Shack announced additional unit openings, including a new Kentwood location slated for 2027 and a new restaurant in Union, NJ — continued unit rollouts can support long‑term revenue and brand penetration. Shake Shack announces new Kentwood location opening in 2027
• Positive Sentiment: A bullish thesis circulated (summarized by InsiderMonkey) arguing that Shake Shack’s growth runway, unit economics and brand premium justify upside versus current multiples — this type of investor commentary can support positive sentiment among growth‑oriented holders. Shake Shack Inc. (SHAK): A Bull Case Theory
• Neutral Sentiment: Market commentary noting the stock moved higher earlier in the session provides context on intraday drivers and recap of recent results and drivers, but contains no new company guidance. Use it for color on short‑term flows. Shake Shack (SHAK) Stock Is Up, What You Need To Know
• Negative Sentiment: Zacks Research cut multiple quarterly and annual EPS estimates (several Qs plus FY2026–FY2027), reducing FY2027 expectations notably — analyst downgrades to near‑term earnings increase downside risk to the stock until results or guidance prove otherwise. MarketBeat SHAK overview (Zacks estimate notes)

Shake Shack Company Profile

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.