Shake Shack Inc (SHAK)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,207 | 20,264 | -25,967 | -10,111 | -45,534 |
| Revenue | US$ in thousands | 1,252,610 | 1,087,530 | 900,486 | 739,893 | 522,867 |
| Net profit margin | 0.81% | 1.86% | -2.88% | -1.37% | -8.71% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $10,207K ÷ $1,252,610K
= 0.81%
Net profit margin measures the profitability of a company by indicating the percentage of revenue that translates into net profit after all expenses are deducted. For Shake Shack Inc, the net profit margin has shown variations over the past five years.
As of December 31, 2020, the net profit margin was -8.71%, indicating that the company's expenses exceeded its revenue, resulting in a negative profit margin. However, there has been a gradual improvement in profitability, with the margin improving to -1.37% by December 31, 2021.
By December 31, 2022, the net profit margin further improved to -2.88%, although it remained negative. The trend reversed positively in the following years, with the margin turning positive at 1.86% by December 31, 2023.
Most recently, as of December 31, 2024, Shake Shack Inc achieved a net profit margin of 0.81%, indicating that the company was able to generate profits equivalent to 0.81% of its total revenue. Overall, the improvement in net profit margin over the years suggests that Shake Shack Inc has been able to better manage its expenses and increase profitability, albeit with fluctuations along the way.
Peer comparison
Dec 31, 2024