Shake Shack Inc. (SHAK) Financial Analysis and Rating

Comparison Analysis Based on SEC Data

Company Name Shake Shack Inc.
Industry (SIC) 581 - Eating And Drinking Places
Revenue in 2023 $1,088 million (ranked #22 out of 56 companies in the industry)
Assets as of 12/31/2023 $1,606 million (ranked #21)
Market Cap $3,786 million (Jun 14, 2024)
Analyzed report 12/31/2022 (filed 2/23/2023)

Year:

Financial Position and Performance

Compared with 2022 industry ratios Change during the year

about the same

unchanged
Compared with all listed companies

about the same

Compare with a competitor

Financial Ratios Benchmarking

Finanancial Ratio Comparison of 2022 company ratios
with industry ratios
(58 - Eating And Drinking Places)
with all listed companies
Solvency Ratios
Debt ratio 
0.72
0.79
0.72
0.61
Debt-to-equity ratio 
2.56
1.12
2.56
1.02
Interest coverage ratio 
-15.00
2.55
-15.00
2.51
Liquidity Ratios
Current Ratio 
2.33
0.85
2.33
1.75
Quick Ratio 
2.20
0.53
2.20
1.07
Cash Ratio 
2.11
0.32
2.11
0.52
Profitability Ratios
Profit margin 
-2.7%
1.9%
-2.7%
2.1%
ROE (Return on equity), after tax 
-5.6%
-5.6%
-5.6%
0.5%
ROA (Return on assets) 
-1.6%
3%
-1.6%
0.8%
Activity Ratios
Asset turnover (days) 
598
430
598
792
Receivables turnover (days) 
6
9
6
48
Resulting score 0,0 +0,1

Year:

Additional Ratios (not used in score calculation)

Finanancial Ratio Comparison of 2022 company ratios
with industry ratios
(58 - Eating And Drinking Places)
with all listed companies
Profitability Ratios
Operating margin (Return on sales) 
-2.5%
3.3%
-2.5%
6.4%
Activity Ratios
EBIT  $(23)M
EBITDA  $50M
Price Ratios
Earnings per Share (basic)  $-0.61
Earnings per Share (diluted)  $-0.61

Auditor's Conclusion

We have performed a comparative analysis of the balance sheet and income statement of Shake Shack Inc. (hereafter – the "Company") for the year 2022 as submitted to the U.S. Securities and Exchange Commission (SEC). The primary business activity of the Company is "Eating And Drinking Places" (SIC code 581). In the analysis, we have compared the key financial ratios of the Company with the average (median) values of those ratios calculated for the specific industry sector and for all companies. The averages are calculated using data from 2022 financial statements filed with the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). By comparing each of the eleven key metrics to the median, we have drawn a general conclusion about the quality of the company's financial condition. Calculations and summary conclusions are performed in a computerized manner using software and methodologies developed by ReadyRatios.

As a result of the analysis of the key financial ratios of the Company, we have established the following. The financial condition of Shake Shack Inc. in 2022 is about the same as the financial condition typical of the companies engaged in the activity "Eating And Drinking Places".

The same conclusion can be reached when comparing the Company's ratios to the averages for all U.S. industries. The financial position of Shake Shack Inc. is about the same as the average financial condition of the listed companies that submit financial statements to the U.S. Securities and Exchange Commission.

Financial Position and Performance History


More on Shake Shack Inc.

Closest Competitors

Company USD ($), in Millions
Revenue Assets
Starbucks Corporation 36,687 29,180
Wendy's Company (The) 2,182 5,183
Dutch Bros Inc. 966 1,764
Cannae Holdings Inc. 500 2,687

See all industry leaders

Financial Data Source and Analysis Principles

The above is a comparative analysis of the company's financial position and performance. The comparison is based on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). The comparison is made using the eleven key financial ratios (see the table above). The company's financial ratios are compared with the median of the ratios for all companies and for companies in the same industry, as well as to the quartiles of these ratios. Each ratio value is assigned a score between -2 and +2 depending on its position relative to the quartiles (-2 – below the first quartile; -1 – between the first and the second quartile; +1 – between the second and the third quartile; +2 – above the third quartile; 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and the quartile closest to the ratio value). To draw a conclusion from the analysis, the individual scores are weighted equally to produce an overall score ranging from -2 and +2.

much better (+1 - +2incl)
better (from 0.11 to +1incl)
about the same (from -0.11incl to +0.11incl)
worse (from -1incl to -0.11)
much worse (from -2incl to -1)
"Change during the year" calculation

Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. The result of the comparison may be as follows:

significantly improved (positive change of more than 1 point)
improved (positive change of less than 1 point)
unchanged (little or no change in score, no more than 0.11 points)
deteriorated (the score has decreased by less than 1 point during the year)
deteriorated significantly (the score has decreased by more than 1 point during the year)


Please note that this analysis does not indicate that the company's financial position is good or bad, but rather describes it in comparison to other U.S. businesses. For a detailed financial analysis, please use "ReadyRatios Financial Analysis" - load the data into the program>>

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