Thinking of Buying Shake Shack (SHAK)? Here's What You Need to Know.

Shares of Consumer Discretionary sector company Shake Shack moved -0.8% today, and are now trading at a price of $69.75. The small-cap stock's daily volume was 75,092 compared to its average volume of 916,873. The S&P 500 index returned a -0.0% performance.

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is based in New York and has 11,704 full time employees. Its market capitalization is $2,999,780,096.

15 analysts are following Shake Shack and have set target prices ranging from $50.0 to $82.0 per share. On average, they have given the company a rating of hold. At today's prices, SHAK is trading 6.0% away from its average analyst target price of $65.8 per share.

Over the last year, SHAK's share price has increased by 54.3%, which represents a difference of 53.0% when compared to the S&P 500. The stock's 52 week high is $71.94 per share whereas its 52 week low is $37.72. Shake Shack has averaged free cash flows of $-39312250.0 over the last 4 years, with a mean growth rate of -41.0%. It is unlikely that the stock can sustain its current performance trend for the long term when the underlying business is experiencing such poor cash flows.

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2022-12-31 76,741 -142,559 -65,818 -52.73
2021-12-31 58,402 -101,495 -43,093 -35.99
2020-12-31 37,350 -69,038 -31,688 -90.32
2019-12-31 89,857 -106,507 -16,650 n/a
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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