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SHAK

Shake Shack NYSE:SHAK Stock Report

Last Price

US$43.17

Market Cap

US$1.8b

7D

-1.6%

1Y

-48.2%

Updated

19 May, 2022

Data

Company Financials +
SHAK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

SHAK Stock Overview

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally.

Rewards

Earnings are forecast to grow 97.01% per year

Risk Analysis

No risks detected for SHAK from our risk checks.

Shake Shack Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shake Shack
Historical stock prices
Current Share PriceUS$43.17
52 Week HighUS$111.49
52 Week LowUS$41.29
Beta1.45
1 Month Change-34.76%
3 Month Change-40.10%
1 Year Change-48.16%
3 Year Change-26.82%
5 Year Change14.03%
Change since IPO-5.95%

Recent News & Updates

May 16

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

SHAKUS HospitalityUS 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

Is SHAK's price volatile compared to industry and market?
SHAK volatility
SHAK Average Weekly Movement9.2%
Hospitality Industry Average Movement9.2%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

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

FoundedEmployeesCEOWebsite
20019,695Randy Garuttihttps://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

How do Shake Shack's earnings and revenue compare to its market cap?
SHAK fundamental statistics
Market CapUS$1.77b
Earnings (TTM)-US$20.13m
Revenue (TTM)US$788.00m

2.3x

P/S Ratio

-90.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHAK income statement (TTM)
RevenueUS$788.00m
Cost of RevenueUS$524.31m
Gross ProfitUS$263.70m
Other ExpensesUS$283.82m
Earnings-US$20.13m

Last Reported Earnings

Mar 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.51
Gross Margin33.46%
Net Profit Margin-2.55%
Debt/Equity Ratio57.3%

How did SHAK perform over the long term?

See historical performance and comparison

Valuation

Is Shake Shack undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation 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

4/6

Future 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

0/6

Past 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

4/6

Financial 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

0/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/30
Annual Earnings2021/12/29


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.