Shake Shack Inc (SHAK)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 573,918 | 398,392 | 381,544 | 306,517 | 212,718 |
| Revenue | US$ in thousands | 1,252,610 | 1,087,530 | 900,486 | 739,893 | 522,867 |
| Gross profit margin | 45.82% | 36.63% | 42.37% | 41.43% | 40.68% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $573,918K ÷ $1,252,610K
= 45.82%
The gross profit margin of Shake Shack Inc has shown fluctuations over the years based on the provided data. It increased steadily from 40.68% in December 31, 2020, to 42.37% in December 31, 2022, indicating improved efficiency in generating profits from its sales. However, there was a decline in the gross profit margin to 36.63% in December 31, 2023, suggesting potential challenges in managing costs or pricing strategies during that period.
The company managed to rebound strongly in December 31, 2024, with a notable increase in the gross profit margin to 45.82%. This substantial improvement could be attributed to various factors such as cost control measures, pricing adjustments, operational efficiencies, or changes in product mix.
Overall, Shake Shack Inc's gross profit margin trend reflects a mix of ups and downs, highlighting the importance of closely monitoring cost structures, revenue streams, and overall profitability to ensure sustainable financial performance in the competitive restaurant industry.
Peer comparison
Dec 31, 2024