Shake Shack Inc (SHAK)
Pretax margin
| 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 23, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 16,254 | 10,847 | -841 | -8,617 | -22,409 | -24,761 | -23,983 | -20,567 | -15,879 | -22,159 | -25,761 | -50,999 | -42,101 | -28,192 | -14,636 | 17,747 | 23,213 | 24,098 | 24,164 | 23,928 |
| Revenue (ttm) | US$ in thousands | 1,088,117 | 1,038,711 | 990,433 | 950,238 | 897,418 | 863,241 | 828,040 | 784,444 | 736,703 | 691,818 | 628,680 | 533,133 | 519,581 | 513,506 | 541,190 | 602,572 | 594,445 | 567,275 | 648,682 | 728,157 |
| Pretax margin | 1.49% | 1.04% | -0.08% | -0.91% | -2.50% | -2.87% | -2.90% | -2.62% | -2.16% | -3.20% | -4.10% | -9.57% | -8.10% | -5.49% | -2.70% | 2.95% | 3.90% | 4.25% | 3.73% | 3.29% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $16,254K ÷ $1,088,117K
= 1.49%
The pretax margin of Shake Shack Inc has fluctuated over the past few quarters. In the most recent quarter, the pretax margin was 1.49%, showing a slight improvement compared to the previous quarter. However, it is important to note that the pretax margin was negative in the two quarters prior to the most recent one, indicating some challenges in profitability.
Looking at the trend over the past several quarters, it is evident that there has been some volatility in the pretax margin, with both positive and negative values observed. The company experienced a significant decrease in pretax margin in the first quarter of 2021, reaching a low of -9.57%. Since then, there has been some recovery, with the pretax margin gradually improving in subsequent quarters.
Overall, the analysis suggests that Shake Shack Inc has faced profitability challenges in the recent past, but there are signs of stabilization and improvement in the company's pretax margin. It will be important to monitor future financial results to assess the sustainability of this positive trend.
Peer comparison
Dec 31, 2023