A general view of the restaurant Shake Shack in Washington, DC, December 30, 2014. The fast-food chain filed to go public on December 29, 2014.AFP / Getty Images
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The Stock: Shake Shack Inc.
Average score 5
The average score for Shake Shack is neutral and relatively in-line with the market. The score improved slightly this week from 4 to 5, primarily due to an improvement in the earnings component score.
Earnings 9. The earnings rating improved significantly over the past week from 6 to 9. The current rating is considerably more bullish than the restaurants and bars industry average of 6. Its current quarter consensus estimate has increased notably over the past 90 days from 0.02 to 0.03, while consensus price targets have risen to $45.40 from $37.
Fundamental 5. Shake Shack has a relatively neutral fundamental rating. The average fundamental rating for the restaurants and bars industry is 6.7 and for the S&P 500 6.6. The company does not currently pay a dividend.
Relative Valuation 1. This is significantly below the S&P 500 index average rating of 5.1. Compared to the restaurants and bars industry, Shake Shack is currently trading at a significant premium based on trailing P/E, forward P/E, and forward PEG.
Risk 7. Risk is moderate and the average risk rating of 8.2 for the S&P 500. On days when the market is up, Shake Shack shares typically decrease. On days when the market is down, the shares tend to decline by more than the S&P 500. Over the last 90 days, Shake Shack shares have been more volatile than the overall market.
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