Shake Shack Inc (SHAK)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 14,244 | 16,980 | -24,285 | -17,335 | -45,477 |
| Revenue | US$ in thousands | 1,252,610 | 1,087,530 | 900,486 | 739,893 | 522,867 |
| Pretax margin | 1.14% | 1.56% | -2.70% | -2.34% | -8.70% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $14,244K ÷ $1,252,610K
= 1.14%
Shake Shack Inc's pretax margin has shown a gradual improvement over the years, starting at a negative 8.70% on December 31, 2020, and decreasing to a negative 2.34% by December 31, 2021. In the following years, the company continued to make progress with its pretax margin, reaching a negative 2.70% by December 31, 2022.
The trend turned positive on December 31, 2023, with a pretax margin of 1.56%, indicating an increase in profitability. This positive momentum was sustained as of December 31, 2024, with a pretax margin of 1.14%.
Overall, the improving trend in pretax margin suggests that Shake Shack Inc has been able to effectively manage its costs and increase profitability over the years, which bodes well for the company's financial health and potential for future growth.
Peer comparison
Dec 31, 2024