📊 SHAK Key Takeaways
Is Shake Shack Inc. (SHAK) a Good Investment?
Shake Shack demonstrates solid revenue growth (+15.4% YoY) backed by a strong balance sheet and positive free cash flow, but profitability fundamentals are deteriorating with net income flat despite significant top-line expansion. The combination of thin margins (3.2% net margin), weak capital returns (8.7% ROE), and margin compression despite growth raises questions about the sustainability and quality of expansion.
Why Buy Shake Shack Inc. Stock? SHAK Key Strengths
- Strong revenue growth of 15.4% YoY demonstrates brand resilience and market demand
- Excellent liquidity position with $360.1M cash and 1.76x current ratio provides operational flexibility
- Robust interest coverage ratio of 29.0x and moderate debt-to-equity of 0.47x indicate low financial distress risk
- Positive free cash flow generation of $56.5M despite capital-intensive operations shows business viability
- Operating cash flow of $222.4M significantly exceeds net income, suggesting quality of earnings
SHAK Stock Risks: Shake Shack Inc. Investment Risks
- Net income growth of 0% YoY despite 15.4% revenue growth indicates severe margin compression and cost pressures
- Thin profit margins (3.2% net, 4.3% operating) leave minimal buffer for further cost inflation or demand shocks
- Weak capital efficiency with ROE of 8.7% and ROA of 2.4% suggests suboptimal returns on capital deployed
- High capital expenditure of $165.8M (11.8% of revenue) reduces free cash flow and limits financial flexibility
- Total liabilities represent 68% of total assets; rising debt service could further pressure already thin margins
Key Metrics to Watch
- Operating margin trend - must stabilize and expand to justify continued growth investments
- Net income growth rate - must turn positive and track with or exceed revenue growth
- Free cash flow margin - current 3.9% level is unsustainably thin
- Return on Equity and Return on Assets - both below cost of capital thresholds
Shake Shack Inc. (SHAK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.9% FCF margin may limit capital allocation flexibility.
SHAK Profit Margin, ROE & Profitability Analysis
SHAK vs Consumer Sector: How Shake Shack Inc. Compares
How Shake Shack Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Shake Shack Inc. Stock Overvalued? SHAK Valuation Analysis 2026
Based on fundamental analysis, Shake Shack Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Shake Shack Inc. Balance Sheet: SHAK Debt, Cash & Liquidity
SHAK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Shake Shack Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.48 reflects profitable operations.
SHAK Revenue Growth, EPS Growth & YoY Performance
SHAK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $316.9M | $1.5M | $0.03 |
| Q2 2025 | $316.5M | $9.7M | $0.23 |
| Q1 2025 | $290.5M | $2.0M | $0.05 |
| Q3 2024 | $276.2M | $1.5M | $0.03 |
| Q2 2024 | $271.8M | $5.4M | $0.13 |
| Q1 2024 | $253.3M | -$1.5M | $-0.04 |
| Q3 2023 | $227.8M | -$2.0M | $-0.05 |
| Q2 2023 | $230.8M | -$1.2M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Shake Shack Inc. Dividends, Buybacks & Capital Allocation
SHAK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Shake Shack Inc. (CIK: 0001620533)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SHAK
What is the AI rating for SHAK?
Shake Shack Inc. (SHAK) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHAK's key strengths?
Claude: Strong revenue growth of 15.4% YoY demonstrates brand resilience and market demand. Excellent liquidity position with $360.1M cash and 1.76x current ratio provides operational flexibility.
What are the risks of investing in SHAK?
Claude: Net income growth of 0% YoY despite 15.4% revenue growth indicates severe margin compression and cost pressures. Thin profit margins (3.2% net, 4.3% operating) leave minimal buffer for further cost inflation or demand shocks.
What is SHAK's revenue and growth?
Shake Shack Inc. reported revenue of $1.4B.
Does SHAK pay dividends?
Shake Shack Inc. does not currently pay dividends.
Where can I find SHAK SEC filings?
Official SEC filings for Shake Shack Inc. (CIK: 0001620533) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SHAK's EPS?
Shake Shack Inc. has a diluted EPS of $1.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SHAK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Shake Shack Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SHAK stock overvalued or undervalued?
Valuation metrics for SHAK: ROE of 8.7% (sector avg: 18%), net margin of 3.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy SHAK stock in 2026?
Our dual AI analysis gives Shake Shack Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SHAK's free cash flow?
Shake Shack Inc.'s operating cash flow is $222.4M, with capital expenditures of $165.8M. FCF margin is 3.9%.
How does SHAK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.2% (avg: 8%), ROE 8.7% (avg: 18%), current ratio 1.76 (avg: 1.5).