Shake Shack Inc (SHAK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 16,254 | -22,409 | -15,879 | -42,101 | 23,213 |
| Revenue | US$ in thousands | 1,085,860 | 897,418 | 736,703 | 512,280 | 594,193 |
| Pretax margin | 1.50% | -2.50% | -2.16% | -8.22% | 3.91% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $16,254K ÷ $1,085,860K
= 1.50%
The pretax margin of Shake Shack Inc has shown fluctuating performance over the past five years, ranging from negative figures to positive figures. In 2023, the pretax margin increased to 1.50%, indicating that the company generated $0.015 in pretax profit for every $1 of revenue. However, in 2022 and 2021, the pretax margin was negative at -2.50% and -2.16% respectively, suggesting that the company incurred pretax losses during those years.
The most significant decline was observed in 2020 when the pretax margin dropped to -8.22%, indicating a substantial decrease in profitability and financial performance. However, the company exhibited robust performance in 2019 with a pretax margin of 3.91%, signifying efficiency in generating pretax profits relative to revenue.
Overall, Shake Shack Inc's pretax margin has been volatile, and management should focus on strategies to consistently improve profitability and operational efficiency to enhance shareholder value.
Peer comparison
Dec 31, 2023