Shake Shack (SHAK) - Get Report shares dropped Friday after the burger chain reported first-quarter revenue and EBITDA that lagged analyst forecasts, prompting analysts to cut their share-price targets.
Analysts also reacted to second-quarter revenue guidance -- the midpoint was below their expectations -- to a slowdown in first-quarter sales growth, and to an emphasis on urban locations over suburban ones.
The stock recently traded at $91.01, down 14%. It has dropped 23% over the past three months, with consumer demand slowing as the pandemic eases.
Among the analysts, Cowen lowered its price target to $93 from $97 and affirmed its market-perform rating.
Wedbush trimmed its target to $114 from $122 and maintained its rating at neutral.
Oppenheimer reduced its target to $124 from $132 and maintained its outperform rating.
Raymond James stuck with its sell rating.
The service builds on the Shack Track service, which already enables customers to preorder their food via the app for pickup at the walk-up windows at Shake Shacks.
As a restaurateur, TheStreet.com Founder Jim Cramer said he had to maintain his belief that some foods aren't meant for delivery. "Beauty is in the eye of the beholder, I guess," he said.
In February, Cramer called Shake Shack Founder Danny Meyer, who is also chief executive of Union Square Hospitality Group, “sensational.” Earlier, Meyer had sat for an interview with TheStreet.com.