{{articledata.title}}

Investors looking to put capital to work might want to consider a position in small-cap stock Shake Shack (NYSE: $SHAK ).

A U.S.-based restaurant chain that has a devoted following, Shake Shack has struggled alongside the entire fast-food industry over the past year.

In 2025, SHAK stock fell 30% to trade at about $90 U.S. a share. The decline came as consumers pulled back their discretionary spending, including on eating out at restaurants.

But after a difficult year, Shake Shack's stock now appears to be on an upswing, presenting an opportunity for investors to capitalize on the rebound.

SHAK stock recently jumped 8% higher on Jan. 6 after Deutsche Bank (NYSE: $DB ) upgraded the restaurant chain.

Deutsche Bank lifted its rating on Shake Shack to a Buy with a $105 U.S. price target. The bank encouraged investors to take advantage of the burger outlet's "near trough valuation."

Other reasons to be bullish on Shake Shack include the company's focus on innovations across its more than 400 restaurant locations.

In recent years, the company has invested heavily in digital initiatives and menu innovations to help boost its sales growth.

Deutsche Bank, and others, say those investments are now poised to payoff for Shack Shake, which operates in a highly competitive sector.

With a market capitalization just below $4 billion U.S., Shake Shack remains a small-cap stock. The company doesn't offer a dividend payment but its growth prospects look encouraging.