Shake Shack slide after BTIG downgrades to 'neutral'

Shake Shack

02/06/2025 15:48

** Shares of fast food chain operator Shake Shack SHAK.N fall as much as 5.2% to $123.04

** BTIG downgrades stock to "neutral" from "buy" after SHAK breaches PT of $125

** Says shares are currently trading within striking distance of an all-time high, believes further upside is unlikely in near term

** Brokerage "less confident" that guest frequency will accelerate in current environment

** Believes co has plenty of profit expansion opportunities, and should reinvest in pricing, and in promotions such as its celebration of National Hamburger Month in May and offering a different free burger every week throughout the month for digital purchases over $10

** Average rating of 25 brokerages is "buy"; median PT is $111- data compiled by LSEG

** Up to last close, SHAK has fallen 3% YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))