NYSE:SHAK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Risks

  • Shake Shack has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Shake Shack's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

NYSE:SHAK

3.6%

US Hospitality

2.9%

US Market


1 Year Return

65.9%

NYSE:SHAK

-4.2%

US Hospitality

0.2%

US Market

SHAK outperformed the Hospitality industry which returned -5.4% over the past year.

SHAK outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

SHAKIndustryMarket
7 Day0.6%3.6%2.9%
30 Day30.3%-3.5%-2.3%
90 Day62.9%2.2%3.1%
1 Year65.9%65.9%-1.9%-4.2%2.4%0.2%
3 Year169.6%169.6%46.1%36.9%41.7%32.4%
5 Yearn/a34.7%19.9%55.1%37.9%

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

Valuation

Is Shake Shack undervalued based on future cash flows and its price relative to the stock market?

181.81x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Shake Shack's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Shake Shack's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Shake Shack is poor value based on expected growth next year.


Price Based on Value of Assets

Shake Shack is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Shake Shack expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shake Shack's revenue is expected to grow by 19.7% yearly, however this is not considered high growth (20% yearly).

Shake Shack's earnings are expected to grow significantly at over 20% yearly.

Shake Shack's revenue growth is expected to exceed the United States of America market average.

Shake Shack's earnings growth is expected to exceed the United States of America market average.

Shake Shack's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Shake Shack is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Shake Shack performed over the past 5 years?

37.8%

Historical annual earnings growth


Earnings and Revenue History


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 (332.6% vs 37.8%)

Shake Shack's earnings growth has exceeded the US Hospitality industry average in the past year (332.6% vs -8.7%).


Return on Equity

Shake Shack has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shake Shack used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Shake Shack's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shake Shack's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Shake Shack has no debt.

Shake Shack has no debt compared to 5 years ago when it was 0.8%.

Shake Shack has no debt, it does not need to be covered by operating cash flow.

Shake Shack has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Shake Shack has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Shake Shack's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

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.

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.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Shake Shack has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Shake Shack's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Shake Shack's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Randy Garutti (44yo)

7.3yrs

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

Randy's remuneration is about average for companies of similar size in United States of America.

Randy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

44yo

Average Age

The average tenure for the Shake Shack management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.7yrs

Average Tenure

51yo

Average Age

The tenure for the Shake Shack board of directors is about average.


Insider Trading

Shake Shack individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$814,03914 Aug 19
Jeffrey Flug
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,013
Max PriceUS$90.58
SellUS$3,642,43209 Aug 19
Jeffrey Flug
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40,987
Max PriceUS$90.20
SellUS$635,91108 Aug 19
Tara Comonte
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,500
Max PriceUS$84.79
SellUS$228,61602 Aug 19
Daniel Meyer
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares2,987
Max PriceUS$76.54
SellUS$7,426,50419 Jul 19
Leonard Green & Partners, L.P.
EntityCompany
Shares100,793
Max PriceUS$73.95
SellUS$15,928,23817 Jul 19
Leonard Green & Partners, L.P.
EntityCompany
Shares212,927
Max PriceUS$75.93
SellUS$1,272,86904 Jun 19
Leonard Green & Partners, L.P.
EntityCompany
Shares21,144
Max PriceUS$60.20
SellUS$10,889,76717 May 19
Leonard Green & Partners, L.P.
EntityCompany
Shares178,739
Max PriceUS$61.30
SellUS$6,907,22516 May 19
Leonard Green & Partners, L.P.
EntityCompany
Shares114,169
Max PriceUS$60.50
SellUS$13,843,80113 May 19
Leonard Green & Partners, L.P.
EntityCompany
Shares229,962
Max PriceUS$60.30
SellUS$20,711,18614 Mar 19
Leonard Green & Partners, L.P.
EntityCompany
Shares389,921
Max PriceUS$53.23
SellUS$3,343,76906 Dec 18
Leonard Green & Partners, L.P.
EntityCompany
Shares64,072
Max PriceUS$55.54
SellUS$1,983,91130 Nov 18
Jeffrey Flug
EntityIndividual
Role
Member of the Board of Directors
Director
Shares37,054
Max PriceUS$54.27
SellUS$3,813,21626 Oct 18
Select Equity Group, L.P.
EntityCompany
Shares74,373
Max PriceUS$53.15
SellUS$3,074,68524 Oct 18
Select Equity Group, L.P.
EntityCompany
Shares57,404
Max PriceUS$54.56
SellUS$3,775,75124 Oct 18
Select Equity Group, L.P.
EntityCompany
Shares66,320
Max PriceUS$58.22
SellUS$2,500,61112 Oct 18
Select Equity Group, L.P.
EntityCompany
Shares42,600
Max PriceUS$59.99
SellUS$386,64603 Oct 18
Select Equity Group, L.P.
EntityCompany
Shares6,222
Max PriceUS$62.83
SellUS$1,360,42021 Sep 18
Select Equity Group, L.P.
EntityCompany
Shares23,552
Max PriceUS$57.76
SellUS$28,575,00013 Sep 18
Leonard Green & Partners, L.P.
EntityCompany
Shares500,000
Max PriceUS$57.15
SellUS$3,516,00013 Sep 18
Leonard Green & Partners, L.P.
EntityCompany
Shares60,000
Max PriceUS$58.60
SellUS$1,460,36211 Sep 18
Jeffrey Flug
EntityIndividual
Role
Member of the Board of Directors
Director
Shares25,000
Max PriceUS$59.03
SellUS$2,339,20810 Sep 18
Leonard Green & Partners, L.P.
EntityCompany
Shares40,000
Max PriceUS$58.88
SellUS$14,840,50207 Sep 18
Leonard Green & Partners, L.P.
EntityCompany
Shares250,000
Max PriceUS$59.74
SellUS$2,962,31005 Sep 18
Jeffrey Flug
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceUS$59.57
SellUS$4,050,82230 Aug 18
Select Equity Group, L.P.
EntityCompany
Shares69,537
Max PriceUS$58.25

Ownership Breakdown


Management Team

  • Danny Meyer (61yo)

    Founder & Chairman

    • Tenure: 9.6yrs
    • Compensation: US$50.00k
  • Tara Comonte (45yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: US$1.58m
  • Randy Garutti (44yo)

    CEO & Director

    • Tenure: 7.3yrs
    • Compensation: US$3.81m
  • Ron Palmese (40yo)

    Senior VP

    • Tenure: 0.0yrs
    • Compensation: US$1.25m
  • Zach Koff (39yo)

    Chief Operating Officer

    • Tenure: 2.6yrs
    • Compensation: US$525.73k
  • Edwin Bragg

    Vice President of Marketing & Communications

    • Tenure: 2.5yrs
  • Michael Kark

    Chief Global Licensing Officer

    • Tenure: 0.5yrs
  • Jay Livingston

    Chief Marketing Officer

    • Tenure: 0.6yrs
  • Dave Harris

    Chief Information Officer

    • Tenure: 0.5yrs
  • Diane Neville

    Senior Vice President of People Resources

    • Tenure: 0.2yrs

Board Members

  • Jon Sokoloff (62yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$50.00k
  • Robert Vivian (61yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$95.00k
  • Josh Silverman (50yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$75.00k
  • Danny Meyer (61yo)

    Founder & Chairman

    • Tenure: 9.6yrs
    • Compensation: US$50.00k
  • Jeff Flug (57yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: US$85.00k
  • Jenna Lyons (51yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$75.00k
  • Anna Fieler (47yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$75.00k
  • Randy Garutti (44yo)

    CEO & Director

    • Tenure: 7.3yrs
    • Compensation: US$3.81m
  • Sumaiya Balbale (38yo)

    Director

    • Tenure: 0.4yrs

Company Information

Shake Shack Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shake Shack Inc.
  • Ticker: SHAK
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$3.592b
  • Market Cap: US$2.945b
  • Shares outstanding: 37.29m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHAKNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 2015
9SHDB (Deutsche Boerse AG)YesClass A Common StockDEEURJan 2015
0L5RLSE (London Stock Exchange)YesClass A Common StockGBUSDJan 2015
SHAK *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJan 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:38
End of Day Share Price2019/08/21 00:00
Earnings2019/06/26
Annual Earnings2018/12/26


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.