Gold prices steady, holding sharp gains in wake of soft U.S. jobs data
Tuesday, Loop Capital reiterated a Hold rating on Shake Shack stock (NYSE:SHAK) with a steady price target of $127.00.
The firm's analysts highlighted Shake Shack's positive fourth-quarter results, which were shared ahead of the company's presentation at the ICR conference last week.
Shake Shack reported a 4.3% increase in comparable sales for the fourth quarter of 2024, slightly exceeding Loop Capital's projection of 4.0% and the consensus estimate of 3.9%.
The analysts said "Comparable sales grew 4.3% in 4Q24, slightly favorable to our prior estimate for 4.0% growth and consensus at up 3.9%. Consolidated revenues of $329M came in ahead of our prior $323M forecast, while store-level EBIT of 22.7% surpassed our prior 21.9% forecast."
In addition, Shake Shack provided guidance for the year 2025, anticipating total revenue between $1.45 billion and $1.48 billion, comparable sales growth of around 3%, store-level EBIT of approximately 22.0%, general and administrative spending at about 11.5% of sales, depreciation and amortization expenses between $108 million and $112 million, and adjusted EBITDA of $200 million to $210 million.
Furthermore, Shake Shack updated its long-term outlook, setting a goal to reach over 1,500 domestic company-owned units.
This is a significant increase from the target of 450 units set during the company's initial public offering in early 2015.
Despite these positive indicators and ambitious long-term plans, Loop Capital is maintaining its Hold rating and price target on Shake Shack stock, which is based on roughly 25 times the firm's 2025 enterprise value to EBITDA estimate.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.