Shake Shack Inc (SHAK)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 294,769 | 161,841 | 234,713 | 304,454 | 372,957 | 455,069 | 357,330 | 267,739 | 243,539 | 223,926 | 276,633 | 325,289 | 306,517 | 287,396 | 264,234 | 258,999 | 225,555 | 221,943 | 233,731 | 231,056 |
| Revenue (ttm) | US$ in thousands | 1,252,608 | 1,210,167 | 1,169,450 | 1,124,759 | 1,087,533 | 1,039,819 | 991,426 | 950,373 | 900,486 | 865,213 | 831,294 | 788,002 | 739,893 | 694,147 | 630,653 | 573,083 | 509,587 | 495,247 | 516,281 | 544,153 |
| Gross profit margin | 23.53% | 13.37% | 20.07% | 27.07% | 34.29% | 43.76% | 36.04% | 28.17% | 27.05% | 25.88% | 33.28% | 41.28% | 41.43% | 41.40% | 41.90% | 45.19% | 44.26% | 44.81% | 45.27% | 42.46% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $294,769K ÷ $1,252,608K
= 23.53%
The gross profit margin of Shake Shack Inc has shown fluctuations over the past few years, starting at 42.46% in June 2020 and reaching a peak of 45.27% in September 2020. However, the margin began to decline gradually, hovering around the mid-40s range for the rest of 2020 and into 2021. The margin dipped notably in June 2021 to 41.90% and continued to decrease steadily until reaching its lowest point of 13.37% in September 2024.
The significant decrease in the gross profit margin from June 2023 to September 2024 is a cause for concern and may indicate challenges in managing the cost of goods sold relative to the revenue generated. This downward trend suggests potential inefficiencies or increased costs in the production process or pricing strategies during this period.
It is crucial for Shake Shack Inc to closely monitor and address the factors impacting its gross profit margin to ensure sustainable profitability and operational efficiency in the future. Additional analysis into the company's cost structure and pricing strategies may provide valuable insights into improving the gross profit margin moving forward.
Peer comparison
Dec 31, 2024