Shake Shack (SHAK) AI Stock Analysis

• Market Cap: $4.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 94.8
• Beta (1Y): 1.37
• Revenue Growth: 13.49%
• EPS Growth: 402.23%
• Country: US
• Employees: 12,826
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.36
• Shares Outstanding: 40,247,757
• 10 Day Avg. Volume: 1,651,627
• 30 Day Avg. Volume: 1,288,945
• PEG Ratio: -10.51
• Price to Book (P/B): 11.19
• Price to Sales (P/S): 4.20
• P/FCF Ratio: 147.49
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $110.71
• Price Target Upside: 14.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 60 Neutral
• Price Target: $96.00 ▼(-0.53% Downside)

Shake Shack's overall score is driven by strong earnings call insights and positive financial performance, despite high leverage and valuation concerns. The company's strategic investments and expansion plans are promising, but technical indicators and high P/E ratio suggest caution.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Operational Efficiencies

Improved operational efficiencies through reduced labor costs enhance profit margins, contributing to sustainable financial health.

Expansion Plans

Aggressive expansion plans indicate growth potential and increased market presence, driving future revenue and brand recognition.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and growth.

Macro Headwinds

Regional economic challenges can hinder sales growth and profitability, affecting overall financial performance and strategic initiatives.

Beef Inflation

Rising beef costs increase input expenses, pressuring margins and potentially leading to higher prices or reduced profitability.

Shake Shack Business Overview & Revenue Model

Company 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 29, 2021, it operated 369 Shacks, including 218 domestic company-operated Shacks, 25 domestic licensed Shacks, and 126 international licensed Shacks. Shake Shack Inc. was founded in 2001 and is headquartered in New York, New York.

How the Company Makes Money

Shake Shack generates revenue primarily through the sale of food and beverage items at its company-operated and franchised locations. The company's core revenue streams include direct sales from its restaurants, which offer a limited but appealing menu that emphasizes quality and freshness. Additionally, Shake Shack earns revenue through franchising agreements, where franchisees pay initial fees and ongoing royalties based on sales. The company has also engaged in partnerships with various food delivery services to expand its reach, allowing customers to order online and increasing sales through delivery channels. Furthermore, Shake Shack occasionally launches limited-time menu items and promotions that drive customer interest and boost revenue during specific periods.

Shake Shack Financial Statement Overview

Summary

Shake Shack shows a positive growth trajectory with improving profitability and strong cash flow generation. However, high leverage and low operational margins present potential risks. Continued focus on operational efficiency and debt management could enhance financial stability and performance.

Income Statement

Shake Shack's income statement shows a positive trajectory with a revenue growth rate of 3.12% TTM, indicating steady expansion. The gross profit margin of 39.68% is healthy, though it has decreased from the previous year. The net profit margin improved to 1.50% TTM, reflecting better profitability. However, the EBIT margin remains low at 2.27%, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.70 TTM, indicating significant leverage, which could pose financial risks. Return on equity is modest at 4.20% TTM, showing some profitability but also highlighting potential for improvement. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 15.80% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.90 TTM suggests efficient cash conversion. However, the free cash flow to net income ratio of 0.25 TTM indicates room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	994.29M	1.25B	1.09B	900.49M	739.89M	522.87M
Gross Profit	369.90M	573.92M	398.39M	381.54M	306.52M	212.72M
EBITDA	97.06M	120.89M	111.74M	51.53M	44.48M	5.58M
Net Income	11.18M	10.21M	20.26M	-25.97M	-10.11M	-45.53M
Balance Sheet
Total Assets	1.78B	1.70B	1.61B	1.49B	1.46B	1.15B
Cash, Cash Equivalents and Short-Term Investments	336.80M	320.71M	293.21M	311.23M	302.41M	183.76M
Total Debt	847.83M	809.62M	771.33M	714.05M	686.19M	384.98M
Total Liabilities	1.26B	1.20B	1.14B	1.08B	1.02B	710.86M
Stockholders Equity	494.10M	470.02M	443.42M	395.12M	435.60M	407.32M
Cash Flow
Free Cash Flow	35.84M	35.66M	-14.03M	-65.82M	-43.09M	-31.69M
Operating Cash Flow	138.08M	171.16M	132.14M	76.74M	58.40M	37.35M
Investing Cash Flow	-99.25M	-66.08M	-132.32M	-143.42M	-144.89M	-69.40M
Financing Cash Flow	-13.72M	-9.02M	-5.68M	-5.20M	242.02M	141.82M

Shake Shack Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 96.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHAK, the sentiment is Neutral. The current price of 96.51 is above the 20-day moving average (MA) of 92.21, below the 50-day MA of 96.74, and below the 200-day MA of 107.98, indicating a neutral trend. The MACD of -1.21 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHAK.

Shake Shack Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBPB	―	―	―	19.65%	―	-1.72%	-70.31%
CAVA	―	$6.23B	45.26	20.90%	―	28.21%	227.11%
NATH	―	$432.79M	18.35	―	1.89%	6.38%	9.98%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	―	$4.12B	94.80	8.83%	―	13.49%	402.23%
WEN	―	$1.63B	8.91	99.35%	9.13%	1.31%	-1.46%
JACK	―	$302.88M	-4.66	―	10.97%	-6.66%	-71.87%

Shake Shack Corporate Events

Shake Shack Reports Strong Q3 2025 Growth

Shake Shack Inc. is a renowned fast-casual restaurant chain known for its high-quality, made-to-order American classics like Angus beef burgers, crispy chicken, and hand-spun milkshakes, with a strong presence in the U.S. and internationally.

Shake Shack Reports Strong Q3 2025 Financial Results

Shake Shack announced its financial results for the third quarter of 2025, reporting a significant increase in total revenue to $367.4 million, a 15.9% rise compared to 2024. The company also achieved a net income of $13.7 million, reversing a net loss from the previous year, and opened 20 new locations. These results highlight Shake Shack’s strong market performance and expansion efforts, indicating positive growth and improved profitability.

The most recent analyst rating on (SHAK) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Shake Shack stock, see the SHAK Stock Forecast page.

Shake Shack’s Earnings Call Highlights Growth and Expansion

Shake Shack Inc. recently held its earnings call, revealing a positive outlook with strong growth across various financial metrics. The company demonstrated significant progress in expanding restaurant-level margins and strategic expansion plans, despite facing challenges such as beef cost inflation and traffic declines earlier in the year. Improvements in July and strategic marketing initiatives indicate a positive trajectory for the company.

Shake Shack Reports Strong Q2 2025 Financial Results

Shake Shack Inc., a prominent player in the fast-casual restaurant industry, is renowned for its elevated versions of American classics such as Angus beef burgers, crispy chicken, and hand-spun milkshakes. With a commitment to quality ingredients and community investment, the company has grown into a cult brand with a global presence.

Shake Shack Reports Strong Q2 2025 Financial Results

On July 31, 2025, Shake Shack announced its financial results for the second quarter of 2025, reporting a total revenue of $356.5 million, a 12.6% increase from 2024. The company also reported an operating income of $22.4 million, a significant rise from $10.8 million in 2024, and a net income of $18.5 million. Shake Shack opened 13 new company-operated Shacks, including two drive-thrus, and nine new licensed Shacks, enhancing its market presence and operational growth.

The most recent analyst rating on (SHAK) stock is a Sell with a $120.00 price target. To see the full list of analyst forecasts on Shake Shack stock, see the SHAK Stock Forecast page.