Shake Shack (SHAK) continues to lack revenue consistency and traffic visibility, as evidenced by the company's recent revenue guidance cut for fiscal Q2, Morgan Stanley said in a Wednesday note.

The company now expects fiscal Q2 revenue between $415 million and $420 million, from $424 million to $428 million previously. The reduction appears to be from company-owned stores, but the outlook suggests an improvement in May from negative same-store sales in April, the brokerage said.

While Shake Shack has implemented a number traffic drivers, these have not yielded the expected results yet, Morgan Stanley added. The investment firm also noted the commodity cycle's potential negative impact on the company's margins.

Morgan Stanley downgraded Shake Shack to equal-weight from overweight, and cut its price target to $76 from $115.

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