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Research Alert: CFRA Maintains Buy Opinion On Shares Of Shake Shack Inc.

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $42 to $87, based on 15x our 2027 EBITDA estimate (rolled forward from 23x our 2026 EBITDA estimate), a discount to shares' 21x three-year average. We lower our 2026 EPS estimate to $1.62 from $1.96 and keep 2027's at $2.22. Our 2026 EBITDA estimate moves lower to $220M from $243M and we raise our 2027 EBITDA estimate to $253M from $217M. Our lower 2026 estimates reflect Q1's step-up in G&A costs, pre-opening costs, and ongoing food cost pressure that led to EBITDA missing estimates by 19%. Our lower 2027 multiple is justified by these pressures persisting on a faster store opening pace. However, we are reiterating our Buy opinion. We think many of the investments were pulled forward in Q1, setting up for a return to margin expansion by H2 2026. Upside to its low-single digit guide on comp growth is possible, given success on marketing, potential World Cup benefits, efforts on new customer acquisition (digital gaining traction), and further LTO launches planned.

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