Shake Shack (SHAK) management's playbook to tap into unused sales and margin drivers remains a key catalyst for brand growth, Oppenheimer said in an emailed note on Wednesday.
Despite the pullback in shares this year and a softer near-term sales environment, Shake Shack presents an "attractive buying opportunity" as sales are positioned to accelerate post-Q1 on menu innovation, ramp in marketing and better digital platform utilization, according to the note.
Analysts said that "margin risk appears below-average as [Shake Shack] captures self-help benefits through its new labor scheduling model deployed in 4Q24 and refreshed focus on elevating operational efficiency."
Oppenheimer reiterated its overweight rating on the stock and reduced its price target to $125 from $155.
Price: 75.67, Change: -0.18, Percent Change: -0.24
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