Shake Shack
Top-quartile growth, but operating margin of 4.3% trails the 14% peer median by 9.7 points.
Point-in-time analysis. The report was generated on the run date shown below from the filing named, and the news context reflects reporting available on that date. This page is not updated as events move on.
Shake Shack closed fiscal 2025 with revenue of $1,445M, up 15.4%, and net income of $45.7M on $222.4M of operating cash flow. Growth is top quartile against the peer median of 4%, and the operating model is efficient where it is measured directly: inventory turns in under a week, receivables in eight days, and SG&A runs at 12.2% of revenue against a 25% median.
The gap is below the gross profit line. Operating margin of 4.3% trails the peer median of 14% by 9.7 points, and net margin of 3.2% trails 9% by 5.8 points. On the company's revenue base the net margin gap is $83.8M; the report treats $33.5M of it as addressable through store-level labor productivity and menu engineering, and labels that share an estimate, because the peer set is packaged food rather than restaurants and the cost structures differ.
Asset turnover of 0.76x against a 1.2x median reflects a capital-intensive company-operated footprint; the report points to smaller formats and licensing as the directional answer without sizing it. The first 100-day move is a margin diagnostic across the top 50 company-operated locations, and the questions for management follow from it: which cost lines carry the gap, and at what pace the opening mix shifts toward licensed units.
