Shake Shack slips as Jefferies turns bearish

** Shake Shack's SHAK shares down 2.4% premarket to $133.60 after Jefferies downgrades fast-food restaurant chain to 'underperform' from 'hold'

** Jefferies says in note it views investor optimism around near-term same-store sales recovery/acceleration as "more than reflected' in stock's recent rally

** Tangible drivers include recent menu innovation that should add visibility into the growth algo, Jefferies says, but adds it remains cognizant of the promotional environment and the high bar regarding restaurant-level margins (targeted >50 bps/yr)

** Jefferies also points to SHAK currently trading at ~25x forward EV/EBITDA vs stock's historical avg of ~23x

** Still, Jefferies boosts its PT by $20 to $120 based on 22x its 2026 estimated EBITDA

** Separately, Wells Fargo increased its PT by $10 to $125

** Now, of 25 brokerages covering SHAK, recommendation breakdown is 11 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell" ratings, LSEG data reflects

** Median PT of $124.50 up from $111 a month ago

** Through Weds close, shares have gained 70% over the past three months, putting them up ~5% YTD. Stock hit record intraday high of $144.65 a week ago