Shake Shack (NYSE:SHAK) Shares Gap Up Following Earnings Beat

Shake Shack, Inc. (NYSE:SHAK) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $92.13, but opened at $104.41. Shake Shack shares last traded at $101.8090, with a volume of 945,357 shares traded.

The company reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02. Shake Shack had a return on equity of 10.43% and a net margin of 3.10%.The company had revenue of $400.50 million for the quarter, compared to analyst estimates of $402.06 million. During the same period in the previous year, the firm earned $0.26 earnings per share. The firm’s quarterly revenue was up 21.8% on a year-over-year basis.

Shake Shack News Summary

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

• Positive Sentiment: Beat on the bottom line and strong YoY sales growth: SHA K reported $0.37 EPS vs. $0.35 consensus and revenue of $400.5M (revenue up 21.8% YoY). Management highlighted operating improvements that helped margins. Shake Shack Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Promotions and deals are drawing customers and supporting profitability — company commentary and press coverage note that targeted value offers helped maintain margins despite industry headwinds. This supports near‑term same‑store sales and shows demand elasticity. Shake Shack Profit Rises as Deals Draw Customers
• Positive Sentiment: Expansion of drive‑thru footprint: company is opening its first Georgia drive‑thru and getting local site approvals, signaling continued unit growth and access to higher ticket drive‑thru demand. This supports long‑term growth expectations. Shake Shack opening its first Georgia drive-thru
• Neutral Sentiment: Operational response to commodity pressure: Shake Shack is absorbing higher beef costs by leaning on promos, menu add‑ons (onion rings) and limited new items (Dubai Chocolate Shake) rather than broad price increases — this protects traffic but could compress margins if costs persist. Shake Shack absorbs higher beef prices with promos, onion rings, and the Dubai Chocolate Shake
• Neutral Sentiment: Management update: Peter Herpich was named interim principal financial officer — a temporary CFO appointment that merits monitoring but is not an immediate red flag. Shake Shack names Peter Herpich interim principal financial officer
• Negative Sentiment: Conservative near‑term revenue guidance: Shake Shack issued Q1 revenue guidance of $366.0M–$370.0M vs. a ~ $371.2M consensus, a small miss that tempers the beat and suggests the company is cautious about early‑fiscal‑year traffic/commodity trends. This likely caps upside until guidance clarity improves.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Oppenheimer set a $145.00 target price on shares of Shake Shack in a research note on Friday, October 31st. Truist Financial lowered Shake Shack from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 3rd. Barclays dropped their price objective on Shake Shack from $115.00 to $110.00 and set an “overweight” rating on the stock in a research note on Wednesday, January 7th. Piper Sandler decreased their target price on Shake Shack from $126.00 to $102.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. Finally, Deutsche Bank Aktiengesellschaft raised Shake Shack from a “hold” rating to a “buy” rating and set a $105.00 price target on the stock in a research note on Tuesday, January 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $116.10.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. acquired a new stake in Shake Shack in the first quarter valued at approximately $26,000. Hilton Head Capital Partners LLC acquired a new position in shares of Shake Shack during the fourth quarter worth approximately $25,000. Global Retirement Partners LLC lifted its holdings in shares of Shake Shack by 83.7% in the 3rd quarter. Global Retirement Partners LLC now owns 327 shares of the company’s stock worth $31,000 after purchasing an additional 149 shares in the last quarter. Assetmark Inc. grew its position in Shake Shack by 457.6% in the 4th quarter. Assetmark Inc. now owns 368 shares of the company’s stock valued at $30,000 after purchasing an additional 302 shares during the period. Finally, UMB Bank n.a. increased its stake in Shake Shack by 42.2% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $32,000 after purchasing an additional 116 shares in the last quarter. Institutional investors own 86.07% of the company’s stock.

Shake Shack Stock Up 10.8%

The firm has a market cap of $4.36 billion, a P/E ratio of 100.54, a price-to-earnings-growth ratio of 2.77 and a beta of 1.75. The stock’s 50 day simple moving average is $90.67 and its 200 day simple moving average is $92.85. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.81 and a current ratio of 1.84.

About Shake Shack

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.