Shake Shack
Market Cap
€2.5b
Last Updated
2020/02/15 23:11 UTC
Data Sources
Company Financials +
Executive Summary
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with solid track record.
Share Price & News
How has Shake Shack's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 9SH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
9SH
5.4%
DE Hospitality
1.7%
DE Market
1 Year Return
45.6%
9SH
11.0%
DE Hospitality
15.0%
DE Market
Return vs Industry: 9SH exceeded the German Hospitality industry which returned 11% over the past year.
Return vs Market: 9SH exceeded the German Market which returned 15% over the past year.
Shareholder returns
| 9SH | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 5.4% | 1.7% |
| 30 Day | 11.3% | 3.4% | 1.4% |
| 90 Day | 17.1% | -9.6% | 3.3% |
| 1 Year | 45.6%45.6% | 15.8%11.0% | 18.5%15.0% |
| 3 Year | 97.6%97.6% | -4.5%-17.6% | 17.1%6.9% |
| 5 Year | 70.5%70.5% | -7.0%-26.6% | 24.3%7.3% |
Price Volatility Vs. Market
How volatile is Shake Shack's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Shake Shack undervalued compared to its fair value and its price relative to the market?
105.8x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 9SH (€67.8) is trading above our estimate of fair value (€14.57)
Significantly Below Fair Value: 9SH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 9SH is poor value based on its PE Ratio (105.8x) compared to the Hospitality industry average (23.8x).
PE vs Market: 9SH is poor value based on its PE Ratio (105.8x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: 9SH is poor value based on its PEG Ratio (8.4x)
Price to Book Ratio
PB vs Industry: 9SH is overvalued based on its PB Ratio (8.5x) compared to the DE Hospitality industry average (2.3x).
Next Steps
Future Growth
How is Shake Shack forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 9SH's forecast earnings growth (12.7% per year) is above the savings rate (-0.4%).
Earnings vs Market: 9SH's earnings (12.7% per year) are forecast to grow slower than the German market (13.2% per year).
High Growth Earnings: 9SH's earnings are forecast to grow, but not significantly.
Revenue vs Market: 9SH's revenue (16.1% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: 9SH's revenue (16.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 9SH's Return on Equity is forecast to be low in 3 years time (6.6%).
Next Steps
Past Performance
How has Shake Shack performed over the past 5 years?
43.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 9SH has high quality earnings.
Growing Profit Margin: 9SH's current net profit margins (3.7%) are higher than last year (0.9%).
Past Earnings Growth Analysis
Earnings Trend: 9SH's earnings have grown significantly by 43.4% per year over the past 5 years.
Accelerating Growth: 9SH's earnings growth over the past year (470.6%) exceeds its 5-year average (43.4% per year).
Earnings vs Industry: 9SH earnings growth over the past year (470.6%) exceeded the Hospitality industry -36.8%.
Return on Equity
High ROE: 9SH's Return on Equity (8.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Shake Shack's financial position?
Financial Position Analysis
Short Term Liabilities: 9SH's short term assets ($99.4M) exceed its short term liabilities ($96.0M).
Long Term Liabilities: 9SH's short term assets ($99.4M) do not cover its long term liabilities ($549.0M).
Debt to Equity History and Analysis
Debt Level: 9SH is debt free.
Reducing Debt: 9SH has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.
Debt Coverage: 9SH has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 9SH has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 9SH has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 9SH's debt is covered by short term assets.
Next Steps
Dividend
What is Shake Shack's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 9SH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 9SH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 9SH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 9SH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 9SH's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Randy Garutti (44yo)
7.8yrs
Tenure
US$3,805,411
Compensation
Mr. Randall J. Garutti, also known as Randy, has been Chief Executive Officer of Shake Shack Inc. since April 2012. Mr. Garutti has been the Chief Executive Officer and Director of SSE Holdings since April ...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD3.81M) is above average for companies of similar size in the German market ($USD2.02M).
Compensation vs Earnings: Randy's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 10.1yrs | US$50.00k | 7.94% $201.4m | |
| CEO & Director | 7.8yrs | US$3.81m | 0.052% $1.3m | |
| President & CFO | 0.3yrs | US$1.58m | 0.054% $1.4m | |
| Chief Operating Officer | 3.1yrs | US$525.73k | 0.015% $385.7k | |
| Chief Information Officer | 1yrs | no data | no data | |
| Senior VP | 0yrs | US$1.25m | no data | |
| Vice President of Marketing & Communications | 3yrs | no data | no data | |
| Chief Marketing Officer | 1.1yrs | no data | no data | |
| Senior Vice President of People Resources | 0.7yrs | no data | no data | |
| Chief Global Licensing Officer | 1yrs | no data | no data |
1.0yrs
Average Tenure
44yo
Average Age
Experienced Management: 9SH's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 10.1yrs | US$50.00k | 7.94% $201.4m | |
| CEO & Director | 7.8yrs | US$3.81m | 0.052% $1.3m | |
| Independent Director | 7.2yrs | US$50.00k | 0.0031% $77.6k | |
| Independent Director | 9.7yrs | US$95.00k | 0.028% $710.8k | |
| Independent Director | 3.3yrs | US$75.00k | 0.0029% $72.3k | |
| Independent Director | 10.1yrs | US$85.00k | 0.013% $333.2k | |
| Independent Director | 5.2yrs | US$75.00k | 0.0046% $116.4k | |
| Independent Director | 2.2yrs | US$75.00k | 0.0012% $30.4k | |
| Independent Director | 0.9yrs | no data | no data |
7.2yrs
Average Tenure
51yo
Average Age
Experienced Board: 9SH's board of directors are considered experienced (7.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10%.
Top Shareholders
Company Information
Shake Shack Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Shake Shack Inc.
- Ticker: 9SH
- Exchange: DB
- Founded: 2004
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$2.750b
- Market Cap: US$2.281b
- Listing Market Cap: US$2.536b
- Shares outstanding: 37.52m
- Website: https://www.shakeshack.com
Number of Employees
Location
- Shake Shack Inc.
- 225 Varick Street
- Suite 301
- New York
- New York
- 10014
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SHAK | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Jan 2015 |
| 9SH | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jan 2015 |
| 0L5R | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Jan 2015 |
| SHAK * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Jan 2015 |
Biography
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of December 26, 2018, it operated 208 Shacks, including 124 domestic company-operated Shacks, 12 domestic licensed Shacks, and 72 international licensed Shacks. Shake Shack Inc. was founded in 2004 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/15 23:11 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/25 |
| Annual Earnings | 2018/12/26 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.