Apr. 10 at 2:41 PM
Shake Shack shares rose Friday after Mizuho analyst Nick Setyan upgraded the stock from Neutral to Outperform and raised the price target to
$120 from
$100, citing stronger-than-expected first-quarter comparable sales growth.
Setyan said checks point to improving same-store sales momentum and restaurant margins through 2026, driven by increased marketing, expanded value offerings, better app adoption tied to a planned loyalty program launch in late 2026, operational improvements, supportive monetary conditions, and demand boosts from the upcoming World Cup.
He expects revenue growth and supply chain efficiencies to lift EBITDA by 10%–20% annually in 2026 and 2027, above the company’s 2019–2024 CAGR of 16%, though still below peer growth of just over 20%.
The
$120 target is based on 17x 2027 EBITDA, implying a smaller valuation discount versus peers than the historical average, reflecting improved growth visibility.
$SHAK