This summary was created by AI, based on 4 opinions in the last 12 months.
Shake Shack Inc (SHAK) is currently facing a challenging environment as consumers are becoming more hesitant, which has affected its stock performance negatively. However, the company's fundamentals appear solid, with an RSI indicating that it is oversold at a current level of around 30-34, suggesting a potential for recovery. The firm is on a long-term growth trajectory with projected revenue growth of 16-17% this year, despite some short-term weakness reflected by a -7% decline over the past month. Shake Shack has also made strategic decisions such as hiring a new CEO with experience in expansion, which bodes well for its global growth initiatives. While the sentiment may be cautious, particularly due to its trendless pattern, many traders see this moment as an attractive buying opportunity, though experts recommend careful monitoring moving forward.
*Short* The whole reason a restaurant business in the US can do well, is that there is a huge market, and hopefully it can go global. However, how many $20 hamburgers do people need? It is a premium burger. The stock is trading at a ridiculously high multiple, over 70X. That multiple just can’t be supported on modest growth. The disparity between eating out and eating at home has gotten to the point where it is hard to see justification of eating a high end hamburger at a quick service restaurant.
*Short* This is a specialty burger restaurant. Danny Myers is the entrepreneur behind it. He has some wonderful restaurants, in New York in particular, but this is his high end burger joint, and it is trading at a ridiculous multiple. The price of eating out has gone up and up, and consumers’ incomes are not going up at the same level.
A good example of an exciting company that IPOs and ends up trading at a premium because everyone likes it. We have seen this with Facebook (FB-Q). It was exciting and came out at a premium, and for the first while the shares were down. This stock is suffering from a similar situation. He likes their business, but would not be a buyer as he feels the evaluation is too rich. PE is pricing in significant growth in the next 6-18 months, so it is pricing in perfection. If there is any shortfall, you are going to see the stock price punished. He would prefer McDonald’s (MCD-N).
Shake Shack Inc is a American stock, trading under the symbol SHAK-N on the New York Stock Exchange (SHAK). It is usually referred to as NYSE:SHAK or SHAK-N
In the last year, 5 stock analysts published opinions about SHAK-N. 1 analyst recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Shake Shack Inc.
Shake Shack Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Shake Shack Inc.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
5 stock analysts on Stockchase covered Shake Shack Inc In the last year. It is a trending stock that is worth watching.
On 2025-04-18, Shake Shack Inc (SHAK-N) stock closed at a price of $83.23.
Consumer discretionary hasn't held up, because consumer sentiment has fallen, taking SHAK down. But SHAK's fundamentals remain the same. RSI is at 30, so is oversold. That said, it's trendless and this is not a buying opportunity. It could be rangebound for a while. He's long-term and will hold. Traders love it here, though.