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Shake ShackSHAK -0.94%80 Cash Ratio is 1.30 as of Jun. 2026, which is 30% below its 10-year median of 1.87. GuruFocus rates SHAK with a GF Score™ of 80/100 and a GF Value™ of $120.26 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 359 Restaurants companies, Shake Shack ranks better than 84.96% on this metric.
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Shake Shack Cash Ratio Related Terms
Shake Shack Cash Ratio Historical Data
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The historical data trend for Shake Shack's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Restaurants subindustry, Shake Shack's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shake Shack Cash Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Shake Shack's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shake Shack (SHAK) has a Cash Ratio of 1.30 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Shake Shack and its competitors. This is 30% below median its historical median of 1.87. Over the past decade, Shake Shack's Cash Ratio has ranged from 0.74 to 3.50. According to the industry distribution chart, Shake Shack ranks #54 out of 359 companies in the Restaurants industry, placing it in the top 15%.
Is Shake Shack's Cash Ratio too high?
Shake Shack's current Cash Ratio of 1.30 is 30% below median its 10-year median of 1.87. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 3.50. The Restaurants industry median Cash Ratio is 0.47. Shake Shack's value of 1.30 is 176.6% above this industry median. Based on the distribution chart, Shake Shack ranks #54 out of 359 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Shake Shack has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's Cash Ratio compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #54 out of 359 companies for Cash Ratio. This places Shake Shack in the top 15% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.47. Shake Shack's value of 1.30 is 176.6% above this benchmark. Historically, Shake Shack's own Cash Ratio has ranged from 0.74 to 3.50 over the past decade. While the company's 10-year median is 1.87 vs. the industry median of 0.47, Shake Shack has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Restaurants company?
The median Cash Ratio among Restaurants companies is 0.47, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current Cash Ratio of 1.30 is 176.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median Cash Ratio is 0.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Cash Ratio is 1.30, which is 30% below median its own 10-year median of 1.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shake Shack stock overvalued right now?
Based on GuruFocus' analysis, Shake Shack (SHAK) is currently considered Significantly Undervalued. The stock's GF Value™ is $120.26, compared to a current price of $69.89 — trading 41.9% below its estimated fair value. The current Cash Ratio is 1.30, which is 30% below median its 10-year median of 1.87 and 176.6% above the Restaurants industry median of 0.47. Shake Shack's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Shake Shack (SHAK), the current Cash Ratio is 1.30 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shake Shack (SHAK) Overvalued in 2026?
Based on GuruFocus' analysis, Shake Shack stock appears to be undervalued.
The current stock price of $69.89 is trading 41.9% below its estimated GF Value™ of $120.26.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for SHAK:
Cash Ratio: 1.30 (30% below median its 10-year median of 1.87)
GF Value™: $120.26 vs. price of $69.89 (41.9% below fair value)
Industry Position: 176.6% above the Restaurants median (#54 of 359)
No single metric tells the full story. See the SHAK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shake Shack Inc is a roadside burger stand. It serves a classic American menu of premium burgers, hot dogs, crispy chicken, frozen custard, crinkle-cut fries, shakes, beer, wine, and more. The company's burgers are made with a whole-muscle blend of all-natural, hormone and antibiotic-free Angus beef, ground fresh daily, cooked to order, and served on a non-genetically modified organism (GMO) potato bun. Its menu focuses on food and beverages, crafted from a range of classic American foods. The company serves draft Root Beer, seasonal freshly-squeezed lemonade, organic fresh-brewed iced tea, cold brew coffee, organic apple juice, and Shack20 bottled water. Geographically, the company generates the majority of its revenue from the United States.
80GF Score
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