NEW YORK, March 28, 2026, 12:04 PM EDT
- Shake Shack finished Friday at $81.32, sliding 4.4%. The S&P 500 also dropped, losing 1.7%.
- D.A. Davidson kept its Buy rating in place on Friday, holding the $125 price target — that’s about 54% above where shares finished.
- Shake Shack says it’s sticking with plans to open 55 to 60 company-operated stores in 2026, after notching a 15.4% revenue jump in 2025.
Shake Shack shares slid 4.4% Friday, ending the session at $81.32. Earlier, D.A. Davidson stuck with its Buy call and kept the $125 price target in place. The stock hit $79.97 at its lowest point—underperforming the wider market by a wide margin.
This stands out: Shake Shack’s stock, a pricey pick among restaurant growth names, traded at about 95 times trailing earnings as of Friday’s close. That’s a sharp premium—Chipotle sits around 34 times, McDonald’s at about 25.
Friday gave Wall Street little relief. Oil prices surged, driving stocks down, while March consumer sentiment tumbled to its lowest in three months. That’s putting investors on edge again over the threat that pricier energy could squeeze discretionary spending.
Restaurant stocks took hits across the board. Starbucks fell 4.8%. Chipotle shed 4.1%. McDonald’s, which investors often look to as a defensive play in the sector, slipped roughly 1%.
Still, some analysts aren’t ready to tap the brakes. Matt Curtis at D.A. Davidson stuck to his Buy call and $125 price target—implying about 54% upside from Friday’s close. That comes just a month after Shake Shack’s fourth-quarter update and its latest expansion plans for 2026.
In a February letter to shareholders, Chief Executive Rob Lynch described 2025 as a year of “strong execution and disciplined growth,” adding that the chain heads into 2026 “with confidence.” Shake Shack reported that same-Shack sales—its preferred metric for tracking comparable performance at company-run locations—rose 2.1% in the fourth quarter, marking a 20th consecutive quarter in positive territory. Full-year revenue jumped 15.4%, coming in at $1.45 billion. SEC
Shake Shack still expects to roll out 55 to 60 company-run stores and open another 40 to 45 licensed spots in 2026, aiming to trim construction costs and pull in more customers with promotions. This week, Circana slotted Shake Shack into its Top 50 U.S. restaurant brands by consumer spending for the first time. David Portalatin, senior vice president and food industry adviser at the research firm, pointed to operators showing “highly adaptable and innovative” strategies as those with the best shot at continued growth. Shake Shack
The risks stand out. Shake Shack has already flagged rising beef prices and a murky macro environment, and Friday’s spike in oil only intensifies the pressure: if inflation lingers, consumers may pull back on dining out. The stock still commands a much steeper earnings multiple than McDonald’s or Chipotle, so investors seem to be looking for more convincing signs that both traffic and margins will keep climbing.
Related articles: NYSE:SHAK
