| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
SHAK Stock Overview
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally.
Rewards
Risk Analysis
No risks detected for SHAK from our risk checks.
Shake Shack Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$43.17 |
| 52 Week High | US$111.49 |
| 52 Week Low | US$41.29 |
| Beta | 1.45 |
| 1 Month Change | -34.76% |
| 3 Month Change | -40.10% |
| 1 Year Change | -48.16% |
| 3 Year Change | -26.82% |
| 5 Year Change | 14.03% |
| Change since IPO | -5.95% |
Recent News & Updates
Shake Shack: Revenue Growth Is Strong, But That Doesn't Mean You Should Buy The Dip
Shake Shack's quarterly revenue grew at 31% YoY, with same-store sales up 10.3%. However, profit margins remain weak due to ongoing inflationary pressures. Management has increased menu prices by 6-7% YoY to combat rising costs. With a potential global recession looming, will customers continue paying these higher prices or find cheaper alternatives? I am currently bearish with a target price of $26/share.
Shareholder Returns
| SHAK | US Hospitality | US Market | |
|---|---|---|---|
| 7D | -1.6% | 1.1% | 0.1% |
| 1Y | -48.2% | -25.0% | -12.7% |
Return vs Industry: SHAK underperformed the US Hospitality industry which returned -25.1% over the past year.
Return vs Market: SHAK underperformed the US Market which returned -11.5% over the past year.
Price Volatility
| SHAK volatility | |
|---|---|
| SHAK Average Weekly Movement | 9.2% |
| Hospitality Industry Average Movement | 9.2% |
| Market Average Movement | 8.0% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.0% |
Stable Share Price: SHAK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: SHAK's weekly volatility (9%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2001 | 9,695 | Randy Garutti | https://www.shakeshack.com |
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 29, 2021, it operated 369 Shacks, including 218 domestic company-operated Shacks, 25 domestic licensed Shacks, and 126 international licensed Shacks.
Shake Shack Fundamentals Summary
| SHAK fundamental statistics | |
|---|---|
| Market Cap | US$1.77b |
| Earnings (TTM) | -US$20.13m |
| Revenue (TTM) | US$788.00m |
2.3x
P/S Ratio-90.4x
P/E RatioIs SHAK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SHAK income statement (TTM) | |
|---|---|
| Revenue | US$788.00m |
| Cost of Revenue | US$524.31m |
| Gross Profit | US$263.70m |
| Other Expenses | US$283.82m |
| Earnings | -US$20.13m |
Last Reported Earnings
Mar 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.51 |
| Gross Margin | 33.46% |
| Net Profit Margin | -2.55% |
| Debt/Equity Ratio | 57.3% |
How did SHAK perform over the long term?
See historical performance and comparisonValuation
Is Shake Shack undervalued compared to its fair value and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
4.54x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate SHAK's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate SHAK's fair value for valuation analysis.
Price To Earnings Ratio
PE vs Industry: SHAK is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.
PE vs Market: SHAK is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SHAK's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SHAK is overvalued based on its PB Ratio (4.5x) compared to the US Hospitality industry average (2.5x).
Future Growth
How is Shake Shack forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
97.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHAK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: SHAK is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: SHAK's is expected to become profitable in the next 3 years.
Revenue vs Market: SHAK's revenue (17% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: SHAK's revenue (17% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SHAK's Return on Equity is forecast to be low in 3 years time (0.7%).
Past Performance
How has Shake Shack performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-52.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SHAK is currently unprofitable.
Growing Profit Margin: SHAK is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SHAK is unprofitable, and losses have increased over the past 5 years at a rate of 52.2% per year.
Accelerating Growth: Unable to compare SHAK's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SHAK is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (86.7%).
Return on Equity
High ROE: SHAK has a negative Return on Equity (-5.17%), as it is currently unprofitable.
Financial Health
How is Shake Shack's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: SHAK's short term assets ($386.6M) exceed its short term liabilities ($126.0M).
Long Term Liabilities: SHAK's short term assets ($386.6M) do not cover its long term liabilities ($898.5M).
Debt to Equity History and Analysis
Debt Level: SHAK has more cash than its total debt.
Reducing Debt: SHAK's debt to equity ratio has increased from 0% to 57.3% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: SHAK has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: SHAK has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 55.2% each year
Dividend
What is Shake Shack current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SHAK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SHAK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SHAK's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SHAK's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as SHAK has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Randy Garutti (46 yo)
10.08yrs
Tenure
US$5,466,562
Compensation
Mr. Randall J. Garutti, also known as Randy, has been Chief Executive Officer and Director of Shake Shack Inc. since April 2012 and SSE Holdings since April 2012. Prior to becoming Chief Executive Officer,...
CEO Compensation Analysis
Compensation vs Market: Randy's total compensation ($USD5.47M) is about average for companies of similar size in the US market ($USD5.41M).
Compensation vs Earnings: Randy's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: SHAK's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: SHAK's board of directors are considered experienced (8.4 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Shake Shack Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Shake Shack Inc.
- Ticker: SHAK
- Exchange: NYSE
- Founded: 2001
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$1.774b
- Market Cap: US$1.652b
- Shares outstanding: 42.13m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/19 00:00 |
| End of Day Share Price | 2022/05/19 00:00 |
| Earnings | 2022/03/30 |
| Annual Earnings | 2021/12/29 |
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.