Shake Shack Inc (SHAK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 23.53% | 13.37% | 20.07% | 27.07% | 34.29% | 43.76% | 36.04% | 28.17% | 27.05% | 25.88% | 33.28% | 41.28% | 41.43% | 41.40% | 41.90% | 45.19% | 44.26% | 44.81% | 45.27% | 42.46% |
| Operating profit margin | 0.91% | 0.49% | 2.53% | 1.64% | 1.10% | 0.39% | -0.28% | -0.53% | -1.83% | -2.29% | -2.56% | -2.60% | -2.14% | -3.11% | -4.08% | -6.25% | -9.79% | -7.77% | -6.04% | -2.98% |
| Pretax margin | 1.14% | 0.23% | 2.26% | 1.82% | 1.56% | 1.08% | -0.13% | -1.00% | -2.70% | -3.11% | -3.13% | -2.84% | -2.34% | -3.44% | -4.41% | -6.50% | -9.98% | -7.75% | -5.83% | -2.84% |
| Net profit margin | 0.81% | 0.72% | 2.27% | 2.12% | 1.86% | 0.19% | -0.77% | -1.66% | -2.84% | -2.80% | -2.93% | -2.70% | -1.17% | -2.64% | -3.45% | -5.10% | -9.18% | -5.71% | -4.81% | -1.64% |
Shake Shack Inc's profitability ratios have shown fluctuations over the analyzed periods.
- The Gross Profit Margin, reflecting the proportion of revenue retained after direct costs, experienced a decline from around 45% in early 2023 to 13% by the end of 2024.
- The Operating Profit Margin, indicating operational efficiency, improved from negative values in 2020 to peaking at 2.53% in mid-2024, signifying a positive trend in managing operating costs.
- The Pretax Margin, representing earnings before taxes relative to revenue, displayed a similar uptrend, reaching 2.26% by mid-2024, suggesting better cost management and revenue generation.
- The Net Profit Margin, demonstrating overall profitability, showcased an increase from negative values in 2020 to approximately 2.27% by mid-2024, indicating enhanced net income generation and potentially better financial health.
These ratios collectively showcase Shake Shack Inc's progress in enhancing profitability and operational efficiency over the analyzed periods.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 30, 2020 | Sep 23, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.67% | 0.35% | 1.78% | 1.14% | 0.74% | 0.26% | -0.18% | -0.33% | -1.10% | -1.32% | -1.44% | -1.41% | -1.09% | -1.50% | -1.80% | -2.55% | -4.36% | -3.38% | -2.74% | -1.44% |
| Return on assets (ROA) | 0.60% | 0.52% | 1.60% | 1.47% | 1.26% | 0.13% | -0.50% | -1.05% | -1.71% | -1.61% | -1.65% | -1.47% | -0.59% | -1.27% | -1.52% | -2.08% | -4.08% | -2.49% | -2.18% | -0.79% |
| Return on total capital | 3.47% | 1.06% | 6.14% | 4.99% | 4.22% | -0.51% | -3.58% | -5.77% | -9.54% | -6.30% | -6.13% | -5.24% | -3.62% | -5.08% | -6.01% | -8.77% | -12.27% | -8.99% | -7.17% | -3.64% |
| Return on equity (ROE) | 2.17% | 1.91% | 5.74% | 5.34% | 4.57% | 0.47% | -1.89% | -4.00% | -6.47% | -6.00% | -6.05% | -5.31% | -1.99% | -4.14% | -4.90% | -7.06% | -11.48% | -6.77% | -5.94% | -2.12% |
Shake Shack Inc Profitability Ratios Analysis:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA started at a negative level of -1.44% in June 2020 but showed a gradual improvement, reaching 0.74% by December 2023 and further increasing to 1.78% by June 2024. This indicates the company's ability to generate operating profits from its assets, which improved over time.
2. Return on Assets (ROA):
- The ROA also started in the negative territory at -0.79% in June 2020, improved consistently, and reached 0.60% by December 2024. This metric reflects the overall profitability of the company's assets, showing a positive trend over the analyzed period.
3. Return on Total Capital:
- The Return on Total Capital was negative at the beginning, dropping as low as -12.27% in December 2020. However, it showed a significant recovery and improvement over time, reaching 3.47% by December 2024. This signifies the company's ability to generate returns from both equity and debt investments.
4. Return on Equity (ROE):
- The ROE, starting at -2.12% in June 2020, exhibited a positive trend, reaching 2.17% by December 2024. This ratio reflects the profitability from the shareholders' perspective, showing an improvement in the company's ability to generate profits relative to the shareholders' equity.
Overall, Shake Shack Inc showed a positive trend in profitability ratios over the analyzed period, indicating an enhancement in the company's operational efficiency and ability to generate returns for its stakeholders.