Shake Shack Inc. Class A Common Stock (SHAK)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Shake Shack traded at $71.06. FairStock's calculations show a P/E of 74.80, P/B of 5.27, PEG of 2.09, EV/EBITDA of 19.82, a Graham Number of $16.97, and a margin of safety of -318.74%. That is not a Graham bargain; it is a priced-for-perfection growth story. The business does have momentum. In fiscal Q2 2026, the quarter ended 2026-07-01, revenue was $417.6M, net income $15.7M, and diluted EPS $0.37. In fiscal Q2 2025, the quarter ended 2025-06-25, revenue was $356.5M, net income $17.1M, and diluted EPS $0.41. Sales rose, but profit and EPS fell year over year. Fiscal Q1 2026, ended 2026-04-01, had a net loss of $290,000, or diluted EPS -$0.01. FairStock's Lynch category is TURNAROUND - returned to profit after a loss within the last three years. Full-year figures show that in fiscal year 2025, period ended 2025-12-31, revenue was $1.4B, net income $45.7M, and diluted EPS $1.09; in fiscal year 2024, period ended 2024-12-25, net income was $10.2M; and in fiscal year 2023, period ended 2023-12-27, net income was $20.3M. Yet TTM free cash flow is -$11.7M and FCF yield is -0.4%. Returns on capital are low: ROE 7.94% and ROCE 1.98%, with D/E 1.67. Altman Z 1.72 and Piotroski 7/9 mix warning with some improvement. Restaurants are competitive and capital-intensive; the brand may draw customers, but the numbers do not yet show a durable moat. I see a decent concept with a fragile balance between growth and profitability, but the price already demands much better execution.

In plain English: Shake Shack runs burger, chicken, hot dog, fries and shake restaurants in the U.S. and internationally. Sales are growing and the company returned to a profit in the latest quarter, but profits are thin, cash generation is negative, and it uses debt. At the recent close of $71.06, the shares look expensive compared with the company's reported earnings and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-01) · fiscal Q1 2026 10-Q (period ended 2026-04-01) · fiscal Q3 2025 10-Q (period ended 2025-09-24) · fiscal Q2 2025 10-Q (period ended 2025-06-25) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-25) · FY2023 10-K (period ended 2023-12-27)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer