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Investing.com - Truist Securities has raised its price target on Shake Shack (NYSE:SHAK) to $162.00 from $160.00 while maintaining a Buy rating following the company’s second-quarter 2025 results. The stock, currently trading at $123.36, has shown impressive momentum with a 61% return over the past year.
The restaurant chain reported mixed results with a same-store sales miss but an adjusted EBITDA beat, leading the company to increase its adjusted EBITDA guidance for the year. The company’s revenue grew 14% year-over-year to $1.28 billion, with a healthy gross margin of 39%.
Shake Shack stock dropped 14.0% following the earnings release, compared to a 0.6% gain for the S&P, which Truist Securities views as a "strong buying opportunity" for investors.
The firm noted that Shake Shack’s July same-store sales growth of 3.2% appeared to receive a smaller boost than expected from the June 24 "Dubai Shake" launch due to low awareness, which the company has since addressed with a "paid marketing" test in seven markets.
Truist Securities expects "sustained positive same-store sales to drive multiple expansion" for Shake Shack, citing the company’s delivery on margins and development plans, with "significant drivers ahead" for continued growth.
In other recent news, Shake Shack reported its financial results for the second quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $0.44, compared to the forecasted $0.37. Revenue also exceeded predictions, reaching $356.5 million against the anticipated $353.58 million. Despite these strong figures, investor concerns were evident. In related developments, TD Cowen adjusted its price target for Shake Shack, raising it to $110 from $105, while maintaining a Hold rating on the company. This adjustment followed an analysis of Shake Shack’s second-quarter performance and July same-store sales results, which were described as encouraging despite a challenging market environment. These recent developments highlight the ongoing interest and scrutiny from analysts and investors regarding Shake Shack’s financial health and market position.
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