Renowned investor Jim Cramer has advised investors to consider purchasing Shake Shack stock at $79 per share, citing strong fundamentals and long-term growth potential despite recent market volatility. The recommendation comes amid renewed investor interest in consumer discretionary stocks.
- Jim Cramer recommends buying Shake Shack (SHAK) at $79 per share
- SHAK's forward P/E ratio is 22, below its five-year average of 26
- Same-store sales grew 12% year-over-year in recent fiscal results
- Stock surged 3.4% intraday after Cramer's commentary
- Company continues international expansion and digital innovation
- $79 is viewed as a strategic entry point amid recent trading range of $75–$85
Jim Cramer, host of CNBC's 'Mad Money,' has issued a bullish call on Shake Shack Inc. (NYSE: SHAK), urging investors to buy the restaurant chain's shares at $79. The recommendation reflects Cramer's belief that the company is undervalued relative to its growth trajectory and brand strength in the fast-casual dining sector. The $79 price point marks a key psychological and technical level for SHAK, which has traded between $75 and $85 over the past six months. Cramer highlighted Shake Shack’s consistent same-store sales growth, expanding international footprint, and resilient customer loyalty as core drivers. He noted the company's recent fiscal results showed a 12% year-over-year increase in comparable restaurant sales, even as broader consumer spending trends remain cautious. Cramer also pointed to Shake Shack's capital allocation strategy, including disciplined store expansion and digital menu innovation, as evidence of management's focus on sustainable profitability. The stock currently trades at a forward P/E ratio of approximately 22, below its five-year average of 26, suggesting potential upside if earnings continue to meet or exceed expectations. The recommendation is likely to influence short-term market sentiment, particularly among retail investors following Cramer’s commentary. Analysts tracking SHAK may revise their price targets upward, and the stock experienced a 3.4% intraday gain following the segment airing. Market participants across the consumer discretionary sector may also reassess valuations in light of the endorsement.