Shake Shack hits 15-mth high as Piper Sandler initiates coverage on fast food chains

Portillos

14/06/2023 18:32

** Shares of fast food chain Shake Shack Inc  SHAK.N  up as
much as 3.2% at $72.35, notching their highest since March 3,
2022
    ** Brokerage Piper Sandler initiates coverage on limited
service restaurant sector, saying the segment continues to take
share from full-service restaurants 
    ** Says SHAK its best idea in restaurant sector; starts
coverage on stock with "overweight" and sets PT of $84, a 19.8%
upside on stock's last close
    ** BTIG brokerage raises PT on SHAK to $85 from $75, which
reflects a 21% upside on stock's last close
    ** SHAK's self-help kiosks system should boost same-store
sales and enable better labor utilization - BTIG
    ** Piper Sandler expects relative out-performance for
limited service franchisors like Domino's Pizza  DPZ.N  and
Wendy's Co  WEN.O  in a recessionary environment
    ** Assumes "neutral" rating and a PT of $308 on McDonald's
 MCD.N , while Domino's, Wendy's and Portillo's  PTLO.O  are
rated "overweight" with PT of $349, $25 and $24, respectively
    ** YTD, SHAK had risen ~69% compared with an ~11% increase
in the S&P Composite 1500 Restaurants  .SPCOMREST  index through
last close

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))