Shake Shack Inc (SHAK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 48.84% | 56.32% | 56.00% | 55.66% | 54.68% | 55.61% | 55.26% | 55.65% | 56.18% | 66.98% | 67.98% | 67.62% | 68.36% | 67.98% | 59.89% | 54.79% | 49.16% | 46.73% | 57.61% | 65.84% |
| Operating profit margin | 0.54% | 0.09% | -0.97% | -1.59% | -3.00% | -3.14% | -3.01% | -2.65% | -2.15% | -3.12% | -4.09% | -9.96% | -8.44% | -6.07% | -3.00% | 3.28% | 4.32% | 4.94% | 4.50% | 4.17% |
| 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% |
| Net profit margin | 1.86% | 0.22% | -0.74% | -1.63% | -2.68% | -2.68% | -2.81% | -2.57% | -1.17% | -2.65% | -3.46% | -7.48% | -8.11% | -4.83% | -1.65% | 2.71% | 3.34% | 3.70% | 2.41% | 1.95% |
Shake Shack Inc's profitability ratios have experienced fluctuations over the periods analyzed.
The gross profit margin has shown some variability, ranging from a low of 46.73% in March 2019 to a high of 67.98% in September 2021. This metric provides insight into the company's ability to generate profits from its core operations after accounting for direct costs.
On the other hand, the operating profit margin and net profit margin both exhibit a general trend of inconsistency, with negative margins observed in certain quarters. The operating profit margin ranged from -9.96% in March 2021 to a high of 4.32% in March 2020. This metric reflects the company's profitability from its operating activities before interest and taxes.
Similarly, the net profit margin fluctuated from a low of -8.11% in December 2020 to a high of 3.70% in March 2019. This ratio showcases Shake Shack's overall profitability after all expenses, including interest and taxes, have been deducted.
Overall, while Shake Shack Inc has demonstrated the ability to achieve healthy levels of gross profit margin at times, the company has struggled to maintain consistent positive operating and net profit margins, indicating challenges in controlling operating expenses and generating net income.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.37% | 0.06% | -0.62% | -0.99% | -1.78% | -1.79% | -1.68% | -1.43% | -1.09% | -1.50% | -1.80% | -3.77% | -3.83% | -2.74% | -1.44% | 1.90% | 2.65% | 2.91% | 3.25% | 3.58% |
| Return on assets (ROA) | 1.26% | 0.15% | -0.47% | -1.01% | -1.59% | -1.52% | -1.57% | -1.39% | -0.59% | -1.27% | -1.52% | -2.83% | -3.68% | -2.18% | -0.79% | 1.57% | 2.05% | 2.18% | 1.74% | 1.68% |
| Return on total capital | 4.05% | 2.87% | 0.19% | -1.71% | -5.07% | -5.57% | -5.61% | -4.78% | -3.49% | -4.99% | -5.90% | -12.03% | -10.14% | -6.55% | -3.28% | 6.07% | 7.91% | 8.62% | 10.03% | 10.93% |
| Return on equity (ROE) | 4.57% | 0.54% | -1.73% | -3.75% | -5.84% | -5.53% | -5.77% | -5.03% | -2.11% | -4.40% | -5.21% | -9.64% | -10.35% | -5.94% | -2.12% | 5.43% | 6.64% | 7.21% | 6.13% | 6.01% |
The profitability ratios of Shake Shack Inc have fluctuated over the past few quarters.
1. Operating return on assets (Operating ROA) has improved from negative values in the beginning of 2021 to positive in the most recent quarter, indicating a better utilization of assets to generate operating income.
2. Return on assets (ROA) has also shown improvement, moving from negative values to positive in the later quarters of 2021 and 2022, signaling an enhancement in the company's overall profitability.
3. Return on total capital has varied significantly, with a decreasing trend from positive values in 2019 to negative values in 2021 and 2022, before some recovery in 2023. This highlights challenges in generating returns on the total capital employed by the company.
4. Return on equity (ROE) has displayed a similar pattern to ROA, showing improvement over the quarters. However, it still remains relatively low, indicating that the company's profitability in relation to shareholders' equity has room for enhancement.
Overall, Shake Shack Inc has made progress in profitability ratios, but there is still a need for continued improvement to ensure sustainable and satisfactory returns for investors.