Shake Shack Inc. (NYSE: SHAK) has received a positive rating from Wall Street analysts who believe it has the potential for solid growth. This restaurant describes itself as the classic American dream story: a business that began as a food cart in Manhattan and has grown into one of the largest fast-food chains in the country. According to the company, its main dishes are chicken-based burgers made with the highest quality ingredients.
Shake Shack Inc.’s (NYSE: SHAK) strongest points are its prime locations in vital US city centers. Several residents of such areas are pressed for time, which prevents them from eating at “slow cuisine” restaurants.
Nick Setyan and Jared Garber, analysts at Goldman Sachs and Wedbush, argue that the recent drop in the SHAK quote reflects investors’ over-examination of the company’s temporary problems. Moreover, Shake Shack has built up an impressive cash reserve and is planning on opening up to 1,000 restaurants, up from 320 currently. The company can also extend its modern grocery delivery network.
Therefore, Shake Shack has plenty of room to grow. Goldman raised its recommendation to buy from ‘neutral’ and set the price target at $ 109. According to Wedbush, the stock is a “Moderate Buy,” and the target price is $118.
Shake Shack Inc. (NYSE: SHAK) concluded the last session at $93.98, declining -1.77% or -$1.69. Its shares fluctuated between $92.895 and $96.10 during the session. There were 0.98 million shares exchanged in the day’s trading, which is higher than the daily average of 0.86 million shared over the previous 50 days and higher than its year-to-date volume of 0.9 million. The company’s stock advanced 69.18% last year, and the stock has advanced 12.31% in the last week. Stocks have gained 15.07 % over the past six months and have declined 20.04 % over the last three months. Stock prices have returned 10.85% so far this year.