The recent sell-off in Shake Shack has been unwarranted, according to Loop Capital. Analyst Alton Stump upgraded shares to buy \from hold. His price target of $127 suggests shares gaining 43.9% from Monday's close. The stock has tumbled around 32% in 2025, which has opened up an attractive entry point for investors, according to Stump. SHAK YTD mountain Shake Shack in 2025 He highlighted the company's stronger-than-expected comparable sales growth over the last three quarters, and successful limited-time offerings such as its black truffle burgers. The analyst also pointed to strong digital sales and labor productivity that could drive around 3% upside to comparable sales growth versus management's expectations. "We believe there is the potential for 10%+ upside to management's guidance for adjusted EBITDA of $200-210M in 2025 in the event comparable sales continue to beat expectations over the course of the current year," Stump wrote in a research note on Tuesday. He added that Shake Shack faces little risks from the escalating trade war. "Shake Shack has minimal risk to the recent escalating tariff situation since the company sources nearly all its ingredients domestically," said Stump. "Management expects its overall commodity basket to be up low single-digits in 2025, which along with manageable labor inflation we are confident the company can offset via modestly higher menu pricing." Shares were up more than 2% following the upgrade. Analysts are somewhat split on the stock. Of the 25 who cover it, 12 rate it a buy or strong buy, per LSEG. Another 12 have a hold rating on it, and one rates it as underperform. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
