Shake Shack (SHAK) AI Stock Analysis

• Market Cap: $3.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 76.7
• Beta (1Y): 1.34
• 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: 40,253,590
• 10 Day Avg. Volume: 1,463,645
• 30 Day Avg. Volume: 1,397,101
• 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: 1.36
• Enterprise Value/Revenue: 3.29
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 25.94
• 1Y Price Target: $111.38
• Price Target Upside: 42.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $1.45B

• Rating: 59 Neutral
• Price Target: $82.00 ▲(5.09% Upside)

Shake Shack's overall stock score reflects solid financial performance and positive earnings call insights, offset by bearish technical indicators and a high valuation. The company's strategic investments and expansion plans are promising, but high leverage and macroeconomic challenges pose risks.

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. is a fast-casual restaurant chain based in New York City, known for its premium burgers, hot dogs, crinkle-cut fries, and shakes. Founded in 2004, Shake Shack operates in the restaurant sector, focusing on quality, fresh ingredients and a unique dining experience. The brand has expanded globally, establishing a strong presence in the United States and internationally, while maintaining its commitment to sustainability and community engagement.

How the Company Makes Money

Shake Shack generates revenue primarily through the sale of food and beverages at its company-operated restaurants and franchised locations. The company's revenue model is built on a combination of dine-in, takeout, and delivery services. Key revenue streams include direct sales from the restaurants, as well as royalties and franchise fees from its franchised locations. Additionally, Shake Shack has partnerships with delivery services and operates a robust digital ordering platform, which enhances convenience and drives sales. The company also benefits from seasonal promotions and limited-time offerings, which attract customers and boost volume during specific periods.

Shake Shack Financial Statement Overview

Summary

Shake Shack shows a positive growth trajectory with improving profitability and 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	1.37B	1.25B	1.09B	900.49M	739.89M	522.87M
Gross Profit	650.90M	573.92M	478.24M	381.54M	306.52M	212.72M
EBITDA	174.35M	120.89M	111.74M	51.53M	44.48M	5.58M
Net Income	42.60M	10.21M	20.26M	-21.23M	-4.56M	-42.16M
Balance Sheet
Total Assets	1.83B	1.70B	1.61B	1.51B	1.46B	1.15B
Cash, Cash Equivalents and Short-Term Investments	357.76M	320.71M	293.21M	311.23M	382.41M	183.76M
Total Debt	853.99M	865.36M	771.33M	720.51M	686.19M	384.98M
Total Liabilities	1.29B	1.20B	1.14B	1.08B	1.03B	710.86M
Stockholders Equity	509.01M	470.02M	443.42M	412.20M	409.54M	407.32M
Cash Flow
Free Cash Flow	62.91M	35.66M	-14.03M	-65.82M	-43.09M	-31.69M
Operating Cash Flow	204.30M	171.16M	132.14M	76.74M	58.40M	37.35M
Investing Cash Flow	-141.40M	-66.08M	-132.32M	-143.42M	-144.89M	-69.40M
Financing Cash Flow	-16.02M	-9.02M	-5.68M	-5.20M	242.02M	141.82M

Shake Shack Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHAK, the sentiment is Negative. The current price of 78.03 is below the 20-day moving average (MA) of 87.16, below the 50-day MA of 90.53, and below the 200-day MA of 104.67, indicating a bearish trend. The MACD of -2.92 indicates Positive momentum. The RSI at 29.96 is Positive, neither overbought nor oversold. The STOCH value of 5.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHAK.

Shake Shack Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAVA	70 Neutral	$6.19B	46.00	19.84%	―	23.93%	153.50%
PBPB	68 Neutral	―	―	19.65%	―	-1.72%	-70.31%
WEN	62 Neutral	$1.61B	8.94	100.85%	7.94%	-0.21%	0.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NATH	60 Neutral	$367.65M	16.18	―	2.16%	7.81%	4.58%
SHAK	59 Neutral	$3.33B	76.65	8.83%	―	13.49%	402.23%
JACK	53 Neutral	$356.02M	―	―	9.34%	-6.75%	-118.94%

Shake Shack Corporate Events

Shake Shack CFO Resignation Announced

On November 25, 2025, Shake Shack announced the resignation of its Chief Financial Officer, Katherine Fogertey, effective March 4, 2026. Fogertey will transition to a Senior Advisor role to ensure a smooth handoff, and the company will immediately begin searching for a new CFO. The company reiterated its financial guidance for the fourth quarter and fiscal year 2025, highlighting expected revenue growth and operational targets. This transition is part of the ordinary course of business and not due to any disagreement with the company’s financial policies.

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.