Shake Shack Inc (SHAK)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 529,150 | 490,674 | 413,906 | 271,286 | 181,868 |
| Revenue | US$ in thousands | 1,085,860 | 897,418 | 736,703 | 512,280 | 594,193 |
| Gross profit margin | 48.73% | 54.68% | 56.18% | 52.96% | 30.61% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $529,150K ÷ $1,085,860K
= 48.73%
The gross profit margin of Shake Shack Inc has shown some fluctuations over the past five years. In 2019, the gross profit margin was at 30.61%, indicating that the company was retaining approximately 30.61% of its total revenue as gross profit after accounting for the cost of goods sold.
Since then, there has been an overall upward trend in the gross profit margin, with 2021 reaching the highest level at 56.18%. This significant increase from 2019 to 2021 suggests that the company improved its cost management strategies or possibly increased prices without a corresponding increase in the cost of goods sold.
However, in 2023, we see a slight decrease in the gross profit margin to 48.73%. This dip may be due to various factors such as increased competition, rising operating costs, or changes in consumer preferences.
Overall, Shake Shack Inc has maintained a relatively healthy gross profit margin over the years, with the exception of the decrease in 2023. Monitoring and analyzing the gross profit margin trend can provide valuable insights into the company's operational efficiency and pricing strategies.
Peer comparison
Dec 31, 2023