Shake Shack (SHAK) is taking some actions that should make its business more robust.
The burger and milkshake chain is teaming up with executive chef Sarah Grueneberg to serve its fans in Chicago special menu items. Proceeds from the offering will go towards Inspiration Kitchens, a nonprofit that trains homeless people in Chicago for a career in the food industry. (See Shake Shack stock analysis on TipRanks)
Additionally, the burger and milkshake chain plans to open a new outlet in Montgomery County, Maryland. According to Bethesda Magazine, the new retail outlet should be up and running in 2022.
Shake Shack has already submitted plans to the city as it seeks to open a freestanding restaurant next to Starbucks (SBUX). The restaurant chain opened its first outlet in Montgomery in 2018. Earlier this month, it announced plans to add a location in the food court of the Westfield Montgomery Mall. (See Starbucks stock analysis on TipRanks)
Piper Sandler analyst Nicole Miller Regan maintains a Buy rating on SHAK stock and a $131 price target, implying 32.11% upside potential to current levels. Moreover, according to the analyst, the stock is undervalued, considering its pipeline for growth.
While Shake Shack is not immune to labor pressures in the industry, Regan believes investments on the team, diversity equity, and inclusions are “long-term strategic differentiators.”
Consensus among analysts is a Hold based on 4 Buys, 8 Holds, and 2 Sells. The average analyst Shake Shack price target of $103.58 implies 4.46% upside potential to current levels.
SHAK scores 3 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock could underperform market expectations.
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