Shake Shack assumed with an Overweight at Piper Sandler

Piper Sandler analyst Brian Mullan assumed coverage of Shake Shack with an Overweight rating and $84 price target. The analyst names Shake Shack the firm’s best idea in the restaurant sector. The company “is still in the midst of putting some very long-standing debates officially to rest,” the analyst tells investors in a research note. Piper says that if Shake Shack can prove RLMs can sustainably be 20% or better at the same time that cash on cash returns for all new development classes can be 30% or better, it won’t be long before investors start to assign far more credit for its long-term unit growth opportunity.