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Shake Shack Inc. (SHAK) Fundamental Analysis & AI Grade 2026

SHAK NYSE Retail-Eating & Drinking Places CIK: 0001620533
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-04-01
Combined AI Grade
D
88% Confidence
N/A
D
88% Conf
Pending
Analysis scheduled

📊 SHAK Key Takeaways

Revenue: $366.7M
Net Margin: -0.1%
Free Cash Flow: $-38.7M
Current Ratio: 1.69x
Debt/Equity: 0.47x
EPS: $-0.01
AI Grade: D with 88% confidence
Shake Shack Inc. (SHAK) receives a D fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $366.7M, net profit margin of -0.1%, and return on equity (ROE) of -0.1%, Shake Shack Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete SHAK stock analysis for 2026.

Is Shake Shack Inc. (SHAK) a Good Investment?

Claude

Shake Shack demonstrates solid revenue growth of 15.4% YoY, but the company remains unprofitable with negative operating income of -2.6M and alarming negative free cash flow of -38.7M. The business cannot generate sufficient operating income to cover its interest obligations (-4.8x coverage ratio), indicating fundamental unit economics problems that threaten financial sustainability.

Shake Shack Inc. Key Strengths (SHAK)

Claude
  • + Revenue growth of 15.4% YoY demonstrates continued customer demand
  • + Strong liquidity position with 1.69x current ratio and 313.6M cash reserves
  • + Moderate leverage with 0.47x debt-to-equity ratio provides financial flexibility

SHAK Stock Risks: Shake Shack Inc. Investment Risks

Claude
  • ! Unprofitable operations with negative operating income and net income despite revenue growth
  • ! Negative free cash flow of -38.7M indicates the company is burning cash on a GAAP basis
  • ! Negative interest coverage of -4.8x means operating income cannot service debt, creating refinancing risk
  • ! Structural profitability challenges with negative operating margin of -0.7% indicating cost structure misalignment

Key Metrics to Watch

Claude
  • * Path to positive operating income and operating margin expansion
  • * Free cash flow inflection point and capital efficiency improvements
  • * Same-store sales growth and unit-level profitability trends

Shake Shack Inc. (SHAK) Financial Metrics & Key Ratios

Revenue
$366.7M
Net Income
$-290.0K
EPS (Diluted)
$-0.01
Free Cash Flow
$-38.7M
Total Assets
$1.9B
Cash Position
$313.7M

💡 AI Analyst Insight

Shake Shack Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

SHAK Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -0.7%
Net Margin -0.1%
ROE -0.1%
ROA 0.0%
FCF Margin -10.6%

SHAK vs Consumer Sector: How Shake Shack Inc. Compares

How Shake Shack Inc. compares to Consumer sector averages

Net Margin
SHAK -0.1%
vs
Sector Avg 8.0%
SHAK Sector
ROE
SHAK -0.1%
vs
Sector Avg 18.0%
SHAK Sector
Current Ratio
SHAK 1.7x
vs
Sector Avg 1.5x
SHAK Sector
Debt/Equity
SHAK 0.5x
vs
Sector Avg 0.8x
SHAK Sector

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.

Return on Equity
-0.1%
Sector avg: 18%
Net Profit Margin
-0.1%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.47x
Sector avg: 0.8x

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

Current Ratio
1.69x
Quick Ratio
1.66x
Debt/Equity
0.47x
Debt/Assets
71.1%
Interest Coverage
-4.81x
Long-term Debt
$248.0M

SHAK Revenue & Earnings Growth: 5-Year Financial Trend

SHAK 5-year financial data: Year 2021: Revenue $739.9M, Net Income $19.8M, EPS $0.61. Year 2022: Revenue $900.5M, Net Income -$42.2M, EPS $-1.14. Year 2023: Revenue $1.1B, Net Income -$4.6M, EPS $-0.12. Year 2024: Revenue $1.3B, Net Income -$21.2M, EPS $-0.54. Year 2025: Revenue $1.4B, Net Income $20.3M, EPS $0.48.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-10.6%
Free cash flow / Revenue

SHAK Quarterly Earnings & Performance

Quarterly financial performance data for Shake Shack Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $320.9M -$290.0K $-0.01
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

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Shake Shack Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$8.5M
Cash generated from operations
Capital Expenditures
$47.2M
Investment in assets
Dividends
None
No dividend program

SHAK SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Shake Shack Inc. (CIK: 0001620533)

📋 Recent SEC Filings

Date Form Document Action
May 27, 2026 4 xslF345X06/wk-form4_1779917621.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137990.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137965.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137939.xml View →
May 18, 2026 4 xslF345X06/wk-form4_1779137912.xml View →

Frequently Asked Questions about SHAK

What is the AI rating for SHAK?

Shake Shack Inc. (SHAK) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SHAK's key strengths?

Claude: Revenue growth of 15.4% YoY demonstrates continued customer demand. Strong liquidity position with 1.69x current ratio and 313.6M cash reserves.

What are the risks of investing in SHAK?

Claude: Unprofitable operations with negative operating income and net income despite revenue growth. Negative free cash flow of -38.7M indicates the company is burning cash on a GAAP basis.

What is SHAK's revenue and growth?

Shake Shack Inc. reported revenue of $366.7M.

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 $-0.01.

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 grade reflects both perspectives for balanced insights.

What is SHAK's fundamental grade?

Based on our AI fundamental analysis in May 2026, Shake Shack Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SHAK stock overvalued or undervalued?

Valuation metrics for SHAK: ROE of -0.1% (sector avg: 18%), net margin of -0.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is SHAK's AI grade for 2026?

Our dual AI analysis gives Shake Shack Inc. a combined D grade 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 $8.5M, with capital expenditures of $47.2M. FCF margin is -10.6%.

How does SHAK compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -0.1% (avg: 8%), ROE -0.1% (avg: 18%), current ratio 1.69 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-04-01 | Powered by Claude AI