Shake Shack Cuts Q2 Revenue Forecast to $415–420M, EBITDA Guidance Lowered
SHAK•Shake Shack cut its Q2 revenue guidance to $415–420 million from $424–428 million and reduced full-year adjusted EBITDA forecast to $225–235 million from $230–245 million. Jefferies, DA Davidson and Oppenheimer lowered price targets to $66, $70 and $82, respectively, while a $70 target implies about 22% upside.
1. Guidance Revision
Shake Shack reduced its fiscal Q2 revenue outlook to $415–420 million, down from $424–428 million, and trimmed same-store sales growth expectation to 2.5%–3.0% versus 3.0%–5.0%. The company also lowered its full-year adjusted EBITDA target to $225–235 million from $230–245 million, reflecting softer consumer spending trends.
2. Analyst Price Target Cuts
DA Davidson adjusted its price target to $70 from $85 and upheld a Buy rating, highlighting more realistic projections. Jefferies cut its target to $66 with a Hold rating, while Oppenheimer trimmed its target to $82 and maintained an Outperform stance, each citing economic pressures and tempered consumer outlook.
3. Market Reaction and Upside
Shake Shack shares slipped over 1% in premarket trading following the guidance reset. Despite cuts, the updated analyst benchmarks still suggest roughly 22% upside from the last close, supported by optimism around recent leadership changes and long-term growth prospects.
