Loop Capital Upgrades Shake Shack to Buy, Shares Rise 1%

Core Viewpoint - Loop Capital upgraded Shake Shack Inc. from Hold to Buy and raised its price target to $127 from $98, indicating a positive outlook on the stock following a significant selloff [1] Group 1: Company Fundamentals - The upgrade reflects Shake Shack's strong fundamentals, including unit growth in the low double-digit to mid-teen range [2] - The company is noted for industry-leading store-level returns and expectations for stable to modestly positive same-store sales over the next 12 to 18 months [2] Group 2: Market Performance - Shake Shack shares have declined more than 30% since July, which Loop Capital views as an attractive buying opportunity [1] - The new price target implies roughly 23x the firm's 2026 EV/EBITDA estimate, justified by Shake Shack's growth trajectory and profitability outlook [2]