Shake Shack
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Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The last earnings update was 14 days ago. More info.
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SHAK Share Price and Events
7 Day Returns
1 Year Returns
SHAK Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Shake Shack (SHAK) | -0.4% | -0.1% | 13.1% | 1.3% | 71.8% | - |
| US Hospitality | -1.6% | -3.5% | 2.3% | -7.2% | 46.4% | 24.4% |
| US Market | -0.7% | -2% | 2.4% | 3% | 39.2% | 42% |
1 Year Return vs Industry and Market
- SHAK outperformed the Hospitality industry which returned -7.2% over the past year.
- SHAK underperformed the Market in United States of America which returned 3% over the past year.
Value
Is Shake Shack undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Shake Shack
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Shake Shack.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 10 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Hospitality Unlevered Beta | Simply Wall St/ S&P Global | 0.94 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 21%) (13.34%)) |
1.023 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.02 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.023 * 5.96%) |
8.83% |
Discounted Cash Flow Calculation for NYSE:SHAK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Shake Shack is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.83%) |
|
|---|---|---|---|
| 2019 | 3.70 | Analyst x1 | 3.40 |
| 2020 | 7.50 | Analyst x1 | 6.33 |
| 2021 | 7.67 | Est @ 2.22% | 5.95 |
| 2022 | 7.85 | Est @ 2.37% | 5.60 |
| 2023 | 8.04 | Est @ 2.48% | 5.27 |
| 2024 | 8.25 | Est @ 2.55% | 4.97 |
| 2025 | 8.46 | Est @ 2.61% | 4.68 |
| 2026 | 8.69 | Est @ 2.64% | 4.42 |
| 2027 | 8.92 | Est @ 2.67% | 4.17 |
| 2028 | 9.16 | Est @ 2.69% | 3.93 |
| Present value of next 10 years cash flows | $48.70 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $9.16 × (1 + 2.73%) ÷ (8.83% – 2.73%) |
$154.33 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $154.33 ÷ (1 + 8.83%)10 |
$66.23 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $48.70 + $66.23 |
$114.94 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $114.94 / 37.16 |
$3.09 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $3.09 |
| Current discount | Discount to share price of
$59.77
= -1 x ($59.77 - $3.09) / $3.09 |
-1832.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Shake Shack is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Shake Shack's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Shake Shack's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-27) in USD | $0.49 |
| NYSE:SHAK Share Price ** | NYSE (2019-05-17) in USD | $59.77 |
| United States of America Hospitality Industry PE Ratio | Median Figure of 74 Publicly-Listed Hospitality Companies | 22.88x |
| United States of America Market PE Ratio | Median Figure of 3,088 Publicly-Listed Companies | 17.89x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Shake Shack.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:SHAK Share Price ÷ EPS (both in USD) = 59.77 ÷ 0.49 |
121.63x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Shake Shack is overvalued based on earnings compared to the US Hospitality industry average.
- Shake Shack is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Shake Shack's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 121.63x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts |
29.3%per year |
| United States of America Hospitality Industry PEG Ratio | Median Figure of 55 Publicly-Listed Hospitality Companies | 1.76x |
| United States of America Market PEG Ratio | Median Figure of 2,117 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 121.63x ÷ 29.3% |
4.15x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Shake Shack is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Shake Shack's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-27) in USD | $7.96 |
| NYSE:SHAK Share Price * | NYSE (2019-05-17) in USD | $59.77 |
| United States of America Hospitality Industry PB Ratio | Median Figure of 111 Publicly-Listed Hospitality Companies | 2.2x |
| United States of America Market PB Ratio | Median Figure of 5,195 Publicly-Listed Companies | 1.83x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:SHAK Share Price ÷ Book Value per Share (both in USD) = 59.77 ÷ 7.96 |
7.51x |
* Primary Listing of Shake Shack.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Shake Shack is overvalued based on assets compared to the US Hospitality industry average.
Value checks
We assess Shake Shack's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check) Shake Shack has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Shake Shack expected to perform in the next 1 to 3 years based on estimates from 10 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Shake Shack's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Shake Shack's earnings growth is expected to exceed the United States of America market average.
- Shake Shack's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:SHAK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts | 29.3% |
| NYSE:SHAK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts | 20.3% |
| United States of America Hospitality Industry Earnings Growth Rate | Market Cap Weighted Average | 16.2% |
| United States of America Hospitality Industry Revenue Growth Rate | Market Cap Weighted Average | 7% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 853 | 31 | 3 | |
| 2020-12-31 | 728 | 120 | 25 | 10 |
| 2019-12-31 | 586 | 93 | 18 | 10 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-27 | 493 | 83 | 14 |
| 2018-12-26 | 459 | 85 | 15 |
| 2018-09-26 | 431 | 80 | 4 |
| 2018-06-27 | 406 | 78 | 4 |
| 2018-03-28 | 381 | 80 | 1 |
| 2017-12-27 | 359 | 71 | 0 |
| 2017-09-27 | 336 | 68 | 16 |
| 2017-06-28 | 316 | 64 | 15 |
| 2017-03-29 | 291 | 55 | 13 |
| 2016-12-28 | 268 | 54 | 12 |
| 2016-09-28 | 246 | 51 | 10 |
| 2016-06-29 | 225 | 48 | 8 |
| 2016-03-30 | 207 | 45 | 5 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
All data from Shake Shack Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 1.02 | 1.09 | 0.95 | 2.00 |
| 2020-12-31 | 0.75 | 0.92 | 0.63 | 5.00 |
| 2019-12-31 | 0.58 | 0.68 | 0.50 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-27 | 0.49 |
| 2018-12-26 | 0.54 |
| 2018-09-26 | 0.13 |
| 2018-06-27 | 0.14 |
| 2018-03-28 | 0.04 |
| 2017-12-27 | -0.01 |
| 2017-09-27 | 0.63 |
| 2017-06-28 | 0.59 |
| 2017-03-29 | 0.55 |
| 2016-12-28 | 0.54 |
| 2016-09-28 | 0.47 |
| 2016-06-29 | 0.41 |
| 2016-03-30 | 0.34 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Shake Shack's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Shake Shack has a total score of 5/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Shake Shack performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Shake Shack has delivered over 20% year on year earnings growth in the past 5 years.
- Shake Shack's 1-year earnings growth exceeds its 5-year average (1466.9% vs 32.8%)
- Shake Shack's earnings growth has exceeded the US Hospitality industry average in the past year (1466.9% vs -0.1%).
Earnings and Revenue History
All data from Shake Shack Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-27 | 492.80 | 14.22 | 65.73 | |
| 2018-12-26 | 459.31 | 15.18 | 63.46 | |
| 2018-09-26 | 431.18 | 3.67 | 56.78 | |
| 2018-06-27 | 406.14 | 3.65 | 54.33 | |
| 2018-03-28 | 381.18 | 0.92 | 50.90 | |
| 2017-12-27 | 358.81 | -0.32 | 47.94 | |
| 2017-09-27 | 335.95 | 16.06 | 45.42 | |
| 2017-06-28 | 315.90 | 14.83 | 44.03 | |
| 2017-03-29 | 291.06 | 13.25 | 42.05 | |
| 2016-12-28 | 268.48 | 12.45 | 40.08 | |
| 2016-09-28 | 246.27 | 9.77 | 37.24 | |
| 2016-06-29 | 224.97 | 7.53 | 33.89 | |
| 2016-03-30 | 206.95 | 5.35 | 31.60 | |
| 2015-12-30 | 190.59 | -8.78 | 29.67 | |
| 2015-09-30 | 174.30 | -11.45 | 29.67 | |
| 2015-07-01 | 152.86 | -12.47 | 29.51 | |
| 2015-04-01 | 132.14 | -11.64 | 26.98 | |
| 2014-12-31 | 118.53 | 2.12 | 24.29 | |
| 2014-09-24 | 106.71 | 4.54 | 17.88 | |
| 2014-06-25 | 97.69 | 4.48 | 16.45 | |
| 2014-03-26 | 88.30 | 4.52 | 14.36 | |
| 2013-12-25 | 82.46 | 5.42 | 12.73 | |
| 2012-12-26 | 57.04 | 4.13 | 8.85 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Shake Shack has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Shake Shack used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
- Shake Shack's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Shake Shack's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Shake Shack has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Shake Shack's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Shake Shack's finances.
The net worth of a company is the difference between its assets and liabilities.
- Shake Shack is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Shake Shack's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Shake Shack Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-27 | 285.74 | 296.15 | 79.56 |
| 2018-12-26 | 273.46 | 20.85 | 86.86 |
| 2018-09-26 | 271.58 | 19.87 | 91.10 |
| 2018-06-27 | 256.45 | 18.34 | 92.28 |
| 2018-03-28 | 233.13 | 17.03 | 87.75 |
| 2017-12-27 | 224.48 | 14.52 | 84.54 |
| 2017-09-27 | 231.78 | 13.16 | 90.19 |
| 2017-06-28 | 221.00 | 11.17 | 85.54 |
| 2017-03-29 | 211.47 | 8.02 | 73.55 |
| 2016-12-28 | 201.35 | 2.01 | 73.65 |
| 2016-09-28 | 191.42 | 0.00 | 73.58 |
| 2016-06-29 | 178.63 | 0.00 | 68.37 |
| 2016-03-30 | 167.42 | 0.31 | 65.86 |
| 2015-12-30 | 157.02 | 0.31 | 71.12 |
| 2015-09-30 | 138.13 | 0.31 | 69.82 |
| 2015-07-01 | 115.35 | 0.31 | 64.92 |
| 2015-04-01 | 109.03 | 0.31 | 60.83 |
| 2014-12-31 | 12.60 | 32.31 | 2.68 |
| 2014-09-24 | 104.02 | 0.31 | 73.93 |
| 2014-06-25 | 36.69 | 0.31 | 5.84 |
| 2014-03-26 | 37.39 | 0.31 | 13.08 |
| 2013-12-25 | 37.39 | 0.31 | 13.08 |
| 2012-12-26 | 31.87 | 0.00 | 16.03 |
- Shake Shack's level of debt (103.6%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0.8% vs 103.6% today).
- Debt is well covered by operating cash flow (28.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 41.7x coverage).
Financial health checks
We assess Shake Shack's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Shake Shack has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Shake Shack's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Shake Shack
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Shake Shack's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Shake Shack's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 10 Analyst Estimates (S&P Global) | See Below |
| United States of America Hospitality Industry Average Dividend Yield | Market Cap Weighted Average of 47 Stocks | 2.7% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2000 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.00 | 1.00 |
| 2020-12-31 | 0.00 | 1.00 |
| 2019-12-31 | 0.00 | 1.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Shake Shack has not reported any payouts.
- Unable to verify if Shake Shack's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Shake Shack's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Shake Shack afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Shake Shack has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $3,805,411 |
| AGE | 43 |
| TENURE AS CEO | 7.1 years |
CEO Bio
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 2012. He served as Chief Operating Officer of SSE Holdings from January 2010 to April 2012. Prior to leading Shake Shack, he served as Director of Operations, overseeing the operations for all USHG restaurants. He served as General Manager of Union Square Cafe and Tabla, both of which won numerous accolades in the hospitality industry. Mr. Garutti is a Member of The Board of Directors of the Columbus Avenue Business Improvement District. He has worked with USHG and Mr. Meyer for 15 years. He has been a Director of Square, Inc. since July 19, 2017. He has been a Director of Shake Shack Inc. since April 2012. Mr. Garutti graduated from Cornell University's School of Hotel Administration in 1997.
CEO Compensation
- Randy's compensation has increased by more than 20% in the past year.
- Randy's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Shake Shack management team in years:
- The average tenure for the Shake Shack management team is less than 2 years, this suggests a new team.
Management Team
Danny Meyer
Founder & Chairman
$50K
60
Randy Garutti
CEO & Director
$4M
43
7.1 yrs
Tara Comonte
Chief Financial Officer
$2M
44
1.9 yrs
Zach Koff
Chief Operating Officer
$526K
38
2.3 yrs
Dave Harris
Chief Information Officer
0.3 yrs
Leo Rhodes
Vice President of Finance & Investor Relations
Ron Palmese
Senior VP
$1M
39
Edwin Bragg
Vice President of Marketing & Communications
2.3 yrs
Jay Livingston
Chief Marketing Officer
0.3 yrs
Michael Kark
Chief Global Licensing Officer
0.3 yrs
Board of Directors Tenure
Average tenure and age of the Shake Shack board of directors in years:
- The tenure for the Shake Shack board of directors is about average.
Board of Directors
Danny Meyer
Founder & Chairman
$50K
60
9.3 yrs
Randy Garutti
CEO & Director
$4M
43
7.1 yrs
Jeff Flug
Director
$85K
56
9.3 yrs
Robert Vivian
Director
$95K
60
8.9 yrs
Jenna Lyons
Director
$75K
50
4.4 yrs
Jon Sokoloff
Director
$50K
61
6.4 yrs
Josh Silverman
Director
$75K
49
2.5 yrs
Anna Fieler
Director
$75K
46
1.4 yrs
Sumaiya Balbale
Director
37
0.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 17. May 19 | Sell | Leonard Green & Partners, L.P. | Company | 15. May 19 | 15. May 19 | -164,089 | $60.91 | $-9,994,661 | ||
| 16. May 19 | Sell | Leonard Green & Partners, L.P. | Company | 14. May 19 | 14. May 19 | -114,169 | $60.50 | $-6,907,225 | ||
| 15. May 19 | Sell | Leonard Green & Partners, L.P. | Company | 14. May 19 | 14. May 19 | -114,169 | $60.50 | $-6,907,225 | ||
| 13. May 19 | Sell | Leonard Green & Partners, L.P. | Company | 09. May 19 | 13. May 19 | -229,962 | $60.30 | $-13,843,801 | ||
| 14. Mar 19 | Sell | Leonard Green & Partners, L.P. | Company | 19. Feb 19 | 13. Mar 19 | -389,921 | $53.23 | $-20,711,186 | ||
| 06. Dec 18 | Sell | Leonard Green & Partners, L.P. | Company | 03. Dec 18 | 03. Dec 18 | -64,072 | $55.54 | $-3,343,769 | ||
| 30. Nov 18 | Sell | Jeffrey Flug | Individual | 29. Nov 18 | 30. Nov 18 | -37,054 | $54.27 | $-1,983,911 | ||
| 26. Oct 18 | Sell | Select Equity Group, L.P. | Company | 24. Oct 18 | 24. Oct 18 | -74,373 | $53.15 | $-3,813,216 | ||
| 24. Oct 18 | Sell | Select Equity Group, L.P. | Company | 22. Oct 18 | 23. Oct 18 | -57,404 | $54.56 | $-3,074,685 | ||
| 24. Oct 18 | Sell | Select Equity Group, L.P. | Company | 18. Oct 18 | 19. Oct 18 | -66,320 | $58.22 | $-3,775,751 | ||
| 12. Oct 18 | Sell | Select Equity Group, L.P. | Company | 10. Oct 18 | 10. Oct 18 | -42,600 | $59.99 | $-2,500,611 | ||
| 03. Oct 18 | Sell | Select Equity Group, L.P. | Company | 01. Oct 18 | 01. Oct 18 | -6,222 | $62.83 | $-386,646 | ||
| 21. Sep 18 | Sell | Select Equity Group, L.P. | Company | 19. Sep 18 | 19. Sep 18 | -23,552 | $57.76 | $-1,360,420 | ||
| 13. Sep 18 | Sell | Leonard Green & Partners, L.P. | Company | 12. Sep 18 | 12. Sep 18 | -500,000 | $57.15 | $-28,575,000 | ||
| 13. Sep 18 | Sell | Leonard Green & Partners, L.P. | Company | 10. Sep 18 | 10. Sep 18 | -60,000 | $58.60 | $-3,516,000 | ||
| 11. Sep 18 | Sell | Jeffrey Flug | Individual | 07. Sep 18 | 10. Sep 18 | -25,000 | $59.03 | $-1,460,362 | ||
| 10. Sep 18 | Sell | Leonard Green & Partners, L.P. | Company | 07. Sep 18 | 07. Sep 18 | -40,000 | $58.88 | $-2,339,208 | ||
| 07. Sep 18 | Sell | Leonard Green & Partners, L.P. | Company | 04. Sep 18 | 06. Sep 18 | -250,000 | $59.74 | $-14,840,502 | ||
| 05. Sep 18 | Sell | Jeffrey Flug | Individual | 30. Aug 18 | 31. Aug 18 | -50,000 | $59.57 | $-2,962,310 | ||
| 30. Aug 18 | Sell | Select Equity Group, L.P. | Company | 28. Aug 18 | 28. Aug 18 | -69,537 | $58.25 | $-4,050,822 | ||
| 03. Aug 18 | Sell | Select Equity Group, L.P. | Company | 01. Aug 18 | 01. Aug 18 | -3,550 | $61.30 | $-217,617 | ||
| 23. Jul 18 | Sell | Select Equity Group, L.P. | Company | 19. Jul 18 | 20. Jul 18 | -74,999 | $69.27 | $-5,131,508 | ||
| 05. Jul 18 | Sell | Select Equity Group, L.P. | Company | 02. Jul 18 | 02. Jul 18 | -118,645 | $65.23 | $-7,739,356 | ||
| 14. Jun 18 | Sell | Tara Comonte | Individual | 13. Jun 18 | 13. Jun 18 | -4,896 | $64.57 | $-315,188 | ||
| 13. Jun 18 | Sell | Select Equity Group, L.P. | Company | 11. Jun 18 | 11. Jun 18 | -130,606 | $64.48 | $-8,212,966 | ||
| 08. Jun 18 | Sell | Robert Vivian | Individual | 07. Jun 18 | 07. Jun 18 | -20,000 | $65.00 | $-1,300,000 | ||
| 04. Jun 18 | Sell | Jeffrey Flug | Individual | 31. May 18 | 01. Jun 18 | -25,000 | $60.63 | $-1,504,544 | ||
Management checks
We assess Shake Shack's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Shake Shack has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Shake Shack Inc. (NYSE:SHAK) Delivered A Weaker ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.075 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleShake Shack Inc.’s (NYSE:SHAK) Investment Returns Are Lagging Its Industry
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.
Simply Wall St - – Full articleDoes The Shake Shack Inc. (NYSE:SHAK) Share Price Fall With The Market?
In finance, Beta is a measure of volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).
Simply Wall St - – Full articleDid You Miss Shake Shack's (NYSE:SHAK) 54% Share Price Gain?
By buying an index fund, investors can approximate the average market return. … But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Simply Wall St - – Full articleHave Insiders Been Selling Shake Shack Inc. (NYSE:SHAK) Shares?
The Last 12 Months Of Insider Transactions At Shake Shack. … In the last twelve months, the biggest single sale by an insider was when Director Jeffrey Flug sold US$3.9m worth of shares at a price of US$41.31 per share. … That means that an insider was selling shares at slightly below the current price (US$52.89)
Simply Wall St - – Full articleShake Shack Inc. (NYSE:SHAK) Delivered A Weaker ROE Than Its Industry
This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Shake Shack has a return on equity of 4.2% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleDoes Shake Shack Inc.'s (NYSE:SHAK) CEO Salary Compare Well With Others?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Randy Garutti's Compensation Compare With Similar Sized Companies. … has a market cap of US$1.7b, and is paying total annual CEO compensation of US$1.1m.
Simply Wall St - – Full articleWhy Shake Shack Inc.’s (NYSE:SHAK) Use Of Investor Capital Doesn’t Look Great
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleHow Does Investing In Shake Shack Inc (NYSE:SHAK) Impact The Volatility Of Your Portfolio?
Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Simply Wall St - – Full articleShould Shake Shack Inc (NYSE:SHAK) Focus On Improving This Fundamental Metric?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … By way of learning-by-doing, we'll look at ROE to gain a better understanding Shake Shack Inc (NYSE:SHAK). … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
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.
Details
| Name: | Shake Shack Inc. |
| SHAK | |
| Exchange: | NYSE |
| Founded: | 2004 |
| $2,220,758,713 | |
| $1,775,262,121 | |
| 37,155,073 | |
| Website: | http://www.shakeshack.com |
| Address: |
Shake Shack Inc. 225 Varick Street, Suite 301, New York, New York, 10014, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | SHAK | Class A Common Stock | New York Stock Exchange | US | USD | 30. Jan 2015 | |
| DB | 9SH | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 30. Jan 2015 | |
| LSE | 0L5R | Class A Common Stock | London Stock Exchange | GB | USD | 30. Jan 2015 | |
| BMV | SHAK * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 30. Jan 2015 |
Number of employees
Current staff
Industry
| Restaurants | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/20 03:08 |
| End of day share price update: | 2019/05/17 00:00 |
| Last estimates confirmation: | 2019/05/07 |
| Last earnings filing: | 2019/05/06 |
| Last earnings reported: | 2019/03/27 |
| Last annual earnings reported: | 2018/12/26 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
