After months of underperformance, SHAK stock is seeing a change in tone among Wall Street analysts.
- JPMorgan highlighted the stock’s valuation following a recent pullback as the driver for the upgrade.
- The brokerage firm added that the fast-food chain has been evolving from an “enlightened hospitality”- focused fine-casual concept to a more efficiently operated company.
- The price target represents a 7% upside from the stock’s current price
Shake Shack (SHAK) shares rose about 2% in premarket trading on Thursday after JPMorgan upgraded the stock, pointing to its valuation following a recent pullback.
JPMorgan upgraded Shake Shack to ‘Neutral’ from ‘Underweight’ but cut the stock’s target price to $90, from $95, after speaking with management, according to The Fly. This represents a 7% upside to the current price of $84.
Analyst Rahul Krotthapalli added that the fast-food chain has been evolving from an “enlightened hospitality”- focused fine-casual concept to a more efficiently operated company. JPMorgan also noted that the company is free cash flow positive.
Brokerages Remain Bullish On Outlook
On Wednesday, Wells Fargo analyst Anthony Trainor lowered Shake Shack’s price target to $90 from $100 but maintained an ‘Equal Weight’ rating on the stock. Following the sector’s underperformance in 2025, Wells Fargo said it is constructive on the early 2026 outlook, supported by stimulus tailwinds, easier year-over-year comparisons, and attractive price-to-earnings valuations. However, the firm cautioned that industry challenges remain and that visibility into second-half drivers is limited.
Shake Shack has an average price target of $113.5 from 26 analysts covering the stock, according to Koyfin data.
Latest Developments
Shake Shack’s third-quarter revenue jumped nearly 16% to $367.4 million, while net income came in at $13.7 million compared to a loss of $11.1 million in 2024. The company expects revenue of $406–$412 million in Q4, with operating margins of 23.3%-23.8%. For full-year 2025, revenue is projected at about $1.45 billion, up roughly 16% year over year, and operating profit margins are projected in the 22.7%-23% range.
Last month, Katherine Fogertey announced that she would step down as the chief financial officer on March 4, 2026.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits shifted to ‘neutral’ from ‘bearish’ a day earlier.
One user highlighted the stock’s support level on technical charts.
SHAK stock gained in four of the last five sessions but has declined by nearly 37% year-to-date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
