Shake Shack Inc (SHAK)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,921 | -26,894 | -15,853 | -43,876 | 25,685 |
| Revenue | US$ in thousands | 1,085,860 | 897,418 | 736,703 | 512,280 | 594,193 |
| Operating profit margin | 0.55% | -3.00% | -2.15% | -8.56% | 4.32% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $5,921K ÷ $1,085,860K
= 0.55%
Shake Shack Inc's operating profit margin has fluctuated over the past five years. In 2023, the company achieved an operating profit margin of 0.55%, indicating that for every dollar of revenue generated, the company retained 0.55 cents as operating profit. This marks an improvement from the negative operating profit margins in 2022 (-3.00%) and 2021 (-2.15%). In 2020, the company experienced a significantly lower operating profit margin of -8.56%, suggesting that operating expenses exceeded operating income. The highest operating profit margin in this period was recorded in 2019 at 4.32%, indicating strong operational efficiency and profitability. Overall, while the recent positive trend in operating profit margin is a positive sign, Shake Shack Inc may need to further enhance its operational effectiveness to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023