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SHAKE SHACK INC - CLASS A (SHAK) Stock Fundamental Analysis

NYSE:SHAK - New York Stock Exchange, Inc. - US8190471016 - Common Stock - Currency: USD

140.05  -1.98 (-1.39%)

After market: 140.05 0 (0%)

Fundamental Rating

4

Overall SHAK gets a fundamental rating of 4 out of 10. We evaluated SHAK against 135 industry peers in the Hotels, Restaurants & Leisure industry. SHAK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SHAK is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SHAK was profitable.
SHAK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SHAK reported negative net income in multiple years.
In the past 5 years SHAK always reported a positive cash flow from operatings.
SHAK Yearly Net Income VS EBIT VS OCF VS FCFSHAK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M

1.2 Ratios

The Return On Assets of SHAK (0.72%) is worse than 61.48% of its industry peers.
SHAK has a Return On Equity of 2.62%. This is comparable to the rest of the industry: SHAK outperforms 56.30% of its industry peers.
The Return On Invested Capital of SHAK (1.96%) is worse than 71.85% of its industry peers.
Industry RankSector Rank
ROA 0.72%
ROE 2.62%
ROIC 1.96%
ROA(3y)0.08%
ROA(5y)-0.81%
ROE(3y)0.21%
ROE(5y)-2.37%
ROIC(3y)N/A
ROIC(5y)N/A
SHAK Yearly ROA, ROE, ROICSHAK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

With a Profit Margin value of 0.97%, SHAK is not doing good in the industry: 60.74% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SHAK has declined.
The Operating Margin of SHAK (3.10%) is worse than 70.37% of its industry peers.
In the last couple of years the Operating Margin of SHAK has declined.
SHAK has a Gross Margin of 46.38%. This is comparable to the rest of the industry: SHAK outperforms 46.67% of its industry peers.
SHAK's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.1%
PM (TTM) 0.97%
GM 46.38%
OM growth 3YN/A
OM growth 5Y-7.31%
PM growth 3YN/A
PM growth 5Y-24.54%
GM growth 3Y3.42%
GM growth 5Y0.55%
SHAK Yearly Profit, Operating, Gross MarginsSHAK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHAK is destroying value.
Compared to 1 year ago, SHAK has more shares outstanding
SHAK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHAK has an improved debt to assets ratio.
SHAK Yearly Shares OutstandingSHAK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
SHAK Yearly Total Debt VS Total AssetsSHAK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

SHAK has an Altman-Z score of 3.82. This indicates that SHAK is financially healthy and has little risk of bankruptcy at the moment.
SHAK has a better Altman-Z score (3.82) than 82.96% of its industry peers.
The Debt to FCF ratio of SHAK is 6.58, which is on the high side as it means it would take SHAK, 6.58 years of fcf income to pay off all of its debts.
SHAK's Debt to FCF ratio of 6.58 is fine compared to the rest of the industry. SHAK outperforms 74.07% of its industry peers.
SHAK has a Debt/Equity ratio of 0.54. This is a neutral value indicating SHAK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, SHAK is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.58
Altman-Z 3.82
ROIC/WACC0.22
WACC8.92%
SHAK Yearly LT Debt VS Equity VS FCFSHAK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 1.91 indicates that SHAK should not have too much problems paying its short term obligations.
SHAK has a Current ratio of 1.91. This is amongst the best in the industry. SHAK outperforms 81.48% of its industry peers.
SHAK has a Quick Ratio of 1.88. This is a normal value and indicates that SHAK is financially healthy and should not expect problems in meeting its short term obligations.
SHAK's Quick ratio of 1.88 is amongst the best of the industry. SHAK outperforms 82.96% of its industry peers.
Industry RankSector Rank
Current Ratio 1.91
Quick Ratio 1.88
SHAK Yearly Current Assets VS Current LiabilitesSHAK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 84.00% over the past year.
SHAK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.80% yearly.
The Revenue has grown by 14.07% in the past year. This is quite good.
The Revenue has been growing by 16.07% on average over the past years. This is quite good.
EPS 1Y (TTM)84%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%7.69%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%10.46%

3.2 Future

Based on estimates for the next years, SHAK will show a very strong growth in Earnings Per Share. The EPS will grow by 27.45% on average per year.
SHAK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.18% yearly.
EPS Next Y49.54%
EPS Next 2Y37.15%
EPS Next 3Y33.11%
EPS Next 5Y27.45%
Revenue Next Year15.34%
Revenue Next 2Y14.11%
Revenue Next 3Y14.15%
Revenue Next 5Y14.18%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SHAK Yearly Revenue VS EstimatesSHAK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B
SHAK Yearly EPS VS EstimatesSHAK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 1 2 3

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1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 152.23, SHAK can be considered very expensive at the moment.
63.70% of the companies in the same industry are cheaper than SHAK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. SHAK is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 81.82, which means the current valuation is very expensive for SHAK.
Based on the Price/Forward Earnings ratio, SHAK is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SHAK is valued quite expensively.
Industry RankSector Rank
PE 152.23
Fwd PE 81.82
SHAK Price Earnings VS Forward Price EarningsSHAK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

SHAK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SHAK is more expensive than 75.56% of the companies in the same industry.
SHAK's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 149.72
EV/EBITDA 41.35
SHAK Per share dataSHAK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SHAK does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as SHAK's earnings are expected to grow with 33.11% in the coming years.
PEG (NY)3.07
PEG (5Y)31.75
EPS Next 2Y37.15%
EPS Next 3Y33.11%

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0

5. Dividend

5.1 Amount

SHAK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SHAKE SHACK INC - CLASS A

NYSE:SHAK (7/11/2025, 8:04:00 PM)

After market: 140.05 0 (0%)

140.05

-1.98 (-1.39%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners104.91%
Inst Owner Change0%
Ins Owners4.39%
Ins Owner Change1.11%
Market Cap5.98B
Analysts74.19
Price Target117.66 (-15.99%)
Short Float %14.64%
Short Ratio3.81
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.44%
Min EPS beat(2)-16.46%
Max EPS beat(2)3.58%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-16.46%
Max EPS beat(4)25.4%
EPS beat(8)6
Avg EPS beat(8)46.76%
EPS beat(12)10
Avg EPS beat(12)51.25%
EPS beat(16)14
Avg EPS beat(16)53.19%
Revenue beat(2)0
Avg Revenue beat(2)-2.99%
Min Revenue beat(2)-4.11%
Max Revenue beat(2)-1.86%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.11%
Max Revenue beat(4)-1.25%
Revenue beat(8)1
Avg Revenue beat(8)-1.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.86%
Revenue beat(16)3
Avg Revenue beat(16)-1.67%
PT rev (1m)0.64%
PT rev (3m)-12.07%
EPS NQ rev (1m)2.13%
EPS NQ rev (3m)9.15%
EPS NY rev (1m)1.64%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-1.27%
Valuation
Industry RankSector Rank
PE 152.23
Fwd PE 81.82
P/S 4.66
P/FCF 149.72
P/OCF 34.8
P/B 12.63
P/tB 12.63
EV/EBITDA 41.35
EPS(TTM)0.92
EY0.66%
EPS(NY)1.71
Fwd EY1.22%
FCF(TTM)0.94
FCFY0.67%
OCF(TTM)4.02
OCFY2.87%
SpS30.07
BVpS11.09
TBVpS11.09
PEG (NY)3.07
PEG (5Y)31.75
Profitability
Industry RankSector Rank
ROA 0.72%
ROE 2.62%
ROCE 2.59%
ROIC 1.96%
ROICexc 2.47%
ROICexgc 2.47%
OM 3.1%
PM (TTM) 0.97%
GM 46.38%
FCFM 3.11%
ROA(3y)0.08%
ROA(5y)-0.81%
ROE(3y)0.21%
ROE(5y)-2.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.73%
ROICexc growth 3YN/A
ROICexc growth 5Y-0.73%
OM growth 3YN/A
OM growth 5Y-7.31%
PM growth 3YN/A
PM growth 5Y-24.54%
GM growth 3Y3.42%
GM growth 5Y0.55%
F-Score6
Asset Turnover0.74
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 6.58
Debt/EBITDA 1.8
Cap/Depr 127.25%
Cap/Sales 10.27%
Interest Coverage 55.28
Cash Conversion 119.81%
Profit Quality 321.58%
Current Ratio 1.91
Quick Ratio 1.88
Altman-Z 3.82
F-Score6
WACC8.92%
ROIC/WACC0.22
Cap/Depr(3y)162.75%
Cap/Depr(5y)160.36%
Cap/Sales(3y)13.36%
Cap/Sales(5y)13.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)84%
EPS 3YN/A
EPS 5Y4.8%
EPS Q2Q%7.69%
EPS Next Y49.54%
EPS Next 2Y37.15%
EPS Next 3Y33.11%
EPS Next 5Y27.45%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y19.18%
Revenue growth 5Y16.07%
Sales Q2Q%10.46%
Revenue Next Year15.34%
Revenue Next 2Y14.11%
Revenue Next 3Y14.15%
Revenue Next 5Y14.18%
EBIT growth 1Y231.93%
EBIT growth 3YN/A
EBIT growth 5Y7.58%
EBIT Next Year550.21%
EBIT Next 3Y107.28%
EBIT Next 5Y63.21%
FCF growth 1Y166.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.83%
OCF growth 3Y43.11%
OCF growth 5Y13.75%