Operating margins remain strained, frequently dipping into low single digits or negative territory, as evidenced by the 1.4% operating margin reported in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.49B | 1.45B | 1.25B | 1.09B | 900.49M | 739.89M | 522.87M | 594.52M | 459.31M | 358.81M | 268.48M | 190.59M | 118.53M | 82.46M | 57.04M |
| Revenue Growth % | 16.22% | 15.38% | 15.18% | 20.77% | 21.7% | 41.51% | -12.05% | 29.44% | 28.01% | 33.65% | 40.86% | 60.8% | 43.75% | 44.56% | - |
| Cost of Goods Sold | 1.21B | 1.19B | 678.69M | 609.29M | 518.94M | 433.38M | 310.15M | 328.99M | 248.19M | 190.08M | 139.29M | 98.83M | 64.24M | 43.96M | 31.21M |
| COGS % of Revenue | - | 82.02% | 54.18% | 56.03% | 57.63% | 58.57% | 59.32% | 55.34% | 54.04% | 52.97% | 51.88% | 51.85% | 54.19% | 53.31% | 54.72% |
| Gross Profit | 285.61M | 259.8M | 573.92M | 478.24M | 381.54M | 306.52M | 212.72M | 265.53M | 211.12M | 168.73M | 129.18M | 91.76M | 54.29M | 38.49M | 25.83M |
| Gross Margin % | 19.15% | 17.98% | 45.82% | 43.97% | 42.37% | 41.43% | 40.68% | 44.66% | 45.96% | 47.03% | 48.12% | 48.15% | 45.81% | 46.69% | 45.28% |
| Gross Profit Growth % | - | -54.73% | 20.01% | 25.34% | 24.48% | 44.1% | -19.89% | 25.77% | 25.12% | 30.62% | 40.78% | 69.01% | 41.04% | 49.04% | - |
| Operating Expenses | 213.83M | 174.04M | 570.88M | 472.32M | 408.44M | 322.37M | 256.59M | 239.85M | 179.41M | 134.92M | 101.38M | 85.01M | 51.15M | 32.56M | 21.14M |
| OpEx % of Revenue | - | 12.04% | 45.58% | 43.43% | 45.36% | 43.57% | 49.07% | 40.34% | 39.06% | 37.6% | 37.76% | 44.6% | 43.15% | 39.49% | 37.07% |
| Selling, General & Admin | 193.22M | 176.23M | 242.12M | 209.39M | 188.52M | 146.42M | 115.84M | 114.1M | 85.43M | 67.2M | 52.38M | 53.03M | 27.94M | 19.34M | 12.04M |
| SG&A % of Revenue | - | 12.19% | 19.33% | 19.25% | 20.94% | 19.79% | 22.16% | 19.19% | 18.6% | 18.73% | 19.51% | 27.82% | 23.57% | 23.46% | 21.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | -2.19M | 328.76M | 262.93M | 219.92M | 175.95M | 140.75M | 125.75M | 93.98M | 67.72M | 49M | 31.98M | 23.21M | 13.21M | 9.1M |
| Operating Income | 71.77M | 85.76M | 3.04M | 5.92M | -26.89M | -15.85M | -43.88M | 25.68M | 31.71M | 33.81M | 27.8M | 6.75M | 3.14M | 5.93M | 4.69M |
| Operating Margin % | 4.81% | 5.93% | 0.24% | 0.54% | -2.99% | -2.14% | -8.39% | 4.32% | 6.9% | 9.42% | 10.36% | 3.54% | 2.65% | 7.2% | 8.22% |
| Operating Income Growth % | - | 2722.81% | -48.69% | 122.02% | -69.65% | 63.87% | -270.82% | -19% | -6.22% | 21.61% | 311.74% | 114.86% | -47.04% | 26.65% | - |
| EBITDA | 180.85M | 192.36M | 107.64M | 98.96M | 47.4M | 44.38M | 6.37M | 66.39M | 60.71M | 55.52M | 42.31M | 16.98M | 8.95M | 9.48M | 6.85M |
| EBITDA Margin % | 12.13% | 13.31% | 8.59% | 9.1% | 5.26% | 6% | 1.22% | 11.17% | 13.22% | 15.47% | 15.76% | 8.91% | 7.55% | 11.49% | 12.01% |
| EBITDA Growth % | 62% | 78.7% | 8.77% | 108.77% | 6.8% | 596.86% | -90.41% | 9.35% | 9.36% | 31.22% | 149.23% | 89.62% | -5.53% | 38.38% | - |
| D&A (Non-Cash Add-back) | 109.08M | 106.6M | 104.61M | 93.04M | 74.3M | 60.24M | 50.24M | 40.7M | 29M | 21.7M | 14.5M | 10.22M | 5.81M | 3.54M | 2.16M |
| EBIT | 72.29M | 74.77M | 16.29M | 18.7M | -22.77M | -15.76M | -44.66M | 27.95M | 33.23M | 161.94M | 28.87M | 6.76M | 3.15M | 8.29M | 6.54M |
| Net Interest Income | -5.37M | -2.16M | -2.04M | -1.72M | -1.52M | -1.58M | -815K | -434K | -2.42M | -1.64M | -374K | -325K | -365K | -52K | -156K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7K | 0 | 0 | 0 |
| Interest Expense | 5.37M | 2.16M | 2.04M | 1.72M | 1.52M | 1.58M | 815K | 434K | 2.42M | 1.64M | 374K | 332K | 365K | 52K | 156K |
| Other Income/Expense | -4.85M | -13.15M | 11.21M | 11.06M | 2.61M | -1.48M | -1.6M | 1.83M | -901K | 126.48M | 691K | -325K | -363K | -52K | -156K |
| Pretax Income | 66.92M | 72.61M | 14.24M | 16.98M | -24.29M | -17.34M | -45.48M | 27.51M | 30.81M | 160.29M | 28.5M | 6.43M | 2.78M | 5.88M | 4.53M |
| Pretax Margin % | 4.49% | 5.02% | 1.14% | 1.56% | -2.7% | -2.34% | -8.7% | 4.63% | 6.71% | 44.67% | 10.61% | 3.37% | 2.35% | 7.13% | 7.94% |
| Income Tax | 22.02M | 22.9M | 3.42M | -4.01M | -1.18M | -11.32M | 57K | 3.39M | 8.86M | 151.41M | 6.35M | 3.3M | 662K | 460K | 397K |
| Effective Tax Rate % | 32.91% | 31.54% | 24.04% | -23.62% | 4.86% | 65.29% | -0.13% | 12.31% | 28.76% | 94.46% | 22.28% | 51.4% | 23.81% | 7.82% | 8.76% |
| Net Income | 41.19M | 45.73M | 10.21M | 20.26M | -21.23M | -4.56M | -42.16M | 19.83M | 15.18M | -320K | 12.45M | -8.78M | 2.12M | 5.42M | 4.13M |
| Net Margin % | 2.76% | 3.16% | 0.81% | 1.86% | -2.36% | -0.62% | -8.06% | 3.33% | 3.3% | -0.09% | 4.64% | -4.6% | 1.79% | 6.58% | 7.25% |
| Net Income Growth % | 231.86% | 347.98% | -49.63% | 195.45% | -365.45% | 89.18% | -312.63% | 30.62% | 4843.44% | -102.57% | 241.82% | -514.35% | -60.94% | 31.21% | - |
| Net Income (Continuing) | 44.9M | 49.71M | 10.82M | 20.99M | -23.11M | -6.02M | -45.53M | 24.13M | 21.95M | 8.88M | 22.15M | 3.12M | 2.12M | 5.42M | 4.13M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 28.68M | 28.42M | 23.61M | 25.95M | 24.63M | 26.06M | 27.17M | 23.17M | 47.38M | 54.99M | 49.16M | 56.4M | 0 | 0 | 0 |
| EPS (Diluted) | 1.02 | 1.09 | 0.24 | 0.46 | -0.66 | -0.22 | -1.23 | 0.61 | 0.52 | -0.09 | 0.53 | -0.65 | 0.19 | 4.33 | 3.30 |
| EPS Growth % | 251% | 354.17% | -47.83% | 169.7% | -200% | 82.11% | -301.64% | 17.31% | 694.29% | -116.51% | 181.54% | -442.11% | -95.61% | 31.21% | - |
| EPS (Basic) | - | 1.14 | 0.26 | 0.51 | -0.66 | -0.22 | -1.23 | 0.63 | 0.54 | -0.09 | 0.54 | -0.65 | 0.19 | 4.33 | 3.30 |
| Diluted Shares Outstanding | 40.29M | 41.85M | 44.2M | 43.9M | 39.24M | 39.09M | 37.13M | 32.25M | 29.18M | 25.88M | 23.45M | 13.59M | 11.23M | 1.25M | 1.25M |
| Basic Shares Outstanding | 40.29M | 40.21M | 39.83M | 39.42M | 39.24M | 39.09M | 37.13M | 31.38M | 28.3M | 25.88M | 22.96M | 13.5M | 11.23M | 1.25M | 1.25M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | 1278.09% | - | - |
Urban AUV Dilution Risk
According to recent quarterly filings, SHAK's revenue growth has fluctuated between 10.5% and 21.9% over the last ten quarters, suggesting that while top-line expansion remains positive, the durability of this growth is increasingly dependent on new unit openings rather than consistent same-store performance across all regions.
The revenue trajectory appears to be entering a more volatile phase as the company pivots toward suburban drive-thru formats. Investors should monitor whether the recent 14.3% growth in 2026Q1 represents a sustainable baseline or if the reliance on new unit expansion is masking potential saturation in core urban markets.
As reported in financial statements, gross margins have exhibited significant variance, peaking near 48% before experiencing a sharp, anomalous contraction in 2025Q4, which highlights the sensitivity of the company's premium ingredient-led cost structure to inflationary pressures and potential operational inefficiencies during rapid expansion phases.
The structural reliance on high-quality inputs leaves little room for margin expansion when commodity costs spike. The recent margin instability suggests that the company's pricing power may be reaching a ceiling, forcing management to balance brand equity with the necessity of maintaining competitive price points in a crowded market.
Based on the provided income statement data, operating income has failed to scale linearly with gross profit, with operating margins frequently dipping into low single digits or negative territory, indicating that SG&A expenses are consuming a disproportionate share of the incremental revenue generated by new locations.
The inability to consistently expand operating margins suggests that the company's overhead and labor-intensive service model are not yet benefiting from meaningful economies of scale. This lack of operating leverage warrants further investigation into whether the current management team can successfully optimize the cost structure during this transition.
Analysis of the company's quarterly filings reveals that stock-based compensation remains a recurring expense, often reaching over $5 million per quarter, which consistently dilutes the quality of reported net income and complicates the assessment of true operational profitability for shareholders.
The presence of significant stock-based compensation alongside lumpy net income figures suggests that GAAP earnings may overstate the company's underlying cash-generating capability. Investors should be cautious of relying on EPS as a primary metric, as non-operating items and compensation adjustments frequently obscure the core operational performance.
While management pursues a drive-thru strategy, the historical data suggests that the company's high-volume urban model is difficult to replicate, raising concerns that the current capital allocation strategy may lead to lower returns on invested capital compared to the legacy flagship locations.
Short-term growth in unit count may be masking a long-term decline in average unit volumes as the brand moves into less dense suburban corridors. If the company cannot maintain its premium brand resonance outside of high-traffic urban centers, the current valuation multiples may prove unsustainable.
Quick answers to the most common questions about buying SHAK stock.
For fiscal year 2025, Shake Shack Inc. (SHAK) reported total revenue of $1.45B. This represents a 2433.9% increase compared to $57.0M in 2012.
Shake Shack Inc. (SHAK) is profitable, generating $45.7M in net income for the fiscal year ending 2025 with a net profit margin of 3.2%.
Shake Shack Inc. (SHAK) reported an operating income of $85.8M, resulting in an operating profit margin of 5.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Shake Shack Inc. (SHAK) generated $259.8M in gross profit for the year, representing a gross profit margin of 18.0%. This demonstrates the company's core pricing power and production efficiency.