Shake Shack rises after RBC initiates coverage with 'outperform'

** Shares of fast-food chain Shake Shack SHAK.N up ~1% at $70.15 premarket

** Brokerage RBC Capital Markets initiates coverage on stock with "outperform" rating and PT of $89

** Says company is at an inflection point, with increasing scale, sophistication in marketing and supply chain potentially driving upside to expectations through at least 2027

** Notes new CFO doing away with quarterly guidance and potentially setting more conservative expectations for investors could yield more consistent quarterly beats

** Says if ground beef prices remain at current levels through 2027, inflation will decelerate to remain flat or decline compared with last year, starting in second quarter of 2027, which, along with supply chain optimization, could provide upside to margins

** Fifteen of 28 brokerages rate SHAK "buy" or higher and 13 "hold"; with a median PT of $82, according to LSEG-compiled data

** Up to last close, stock has fallen 14.5% YTD