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Shake ShackLTS:0L5R +2.00%70 Current Ratio is 1.69 as of Mar. 2026, which is 21% below its 10-year median of 2.13. GuruFocus rates LTS:0L5R with a GF Score™ of 70/100 and a GF Value™ of $120.74 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 363 Restaurants companies, Shake Shack ranks better than 77.13% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Shake Shack's current ratio for the quarter that ended in Mar. 2026 was 1.69.
Shake Shack has a current ratio of 1.69. It generally indicates good short-term financial strength.
The historical rank and industry rank for Shake Shack's Current Ratio or its related term are showing as below:
LTS:0L5R'
s Current Ratio Range Over the Past 10 Years
Min: 0.88 Med: 2.13 Max: 3.67
Current: 1.69
During the past 13 years, Shake Shack's highest Current Ratio was 3.67. The lowest was 0.88. And the median was 2.13.
LTS:0L5R's Current Ratio is ranked better than 77.13% of 363
companies
in the Restaurants industry
Industry Median: 0.99
vs LTS:0L5R: 1.69
Shake Shack (LTS:0L5R) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Shake Shack Current Ratio Related Terms
Shake Shack Current Ratio Historical Data
* Premium members only.
The historical data trend for Shake Shack's Current 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.
LTS:0L5R vs ARCO, BJRI, WEN: Current Ratio Comparison
For the Restaurants subindustry, Shake Shack's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Current Ratio distribution charts can be found below:
* The bar in red indicates where Shake Shack's Current 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 (LTS:0L5R) has a Current Ratio of 1.69 as of Mar. 2026. This is 21% below median its historical median of 2.13. Over the past decade, Shake Shack's Current Ratio has ranged from 0.88 to 3.67. According to the industry distribution chart, Shake Shack ranks #83 out of 363 companies in the Restaurants industry, placing it in the top 22.9%.
Is Shake Shack's Current Ratio too high?
Shake Shack's current Current Ratio of 1.69 is 21% below median its 10-year median of 2.13. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 3.67. The Restaurants industry median Current Ratio is 0.99. Shake Shack's value of 1.69 is 70.7% above this industry median. Based on the distribution chart, Shake Shack ranks #83 out of 363 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 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's Current Ratio compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #83 out of 363 companies for Current Ratio. This places Shake Shack in the top 23% of its industry — outperforming the majority of peers. The industry median Current Ratio is 0.99. Shake Shack's value of 1.69 is 70.7% above this benchmark. Historically, Shake Shack's own Current Ratio has ranged from 0.88 to 3.67 over the past decade. While the company's 10-year median is 2.13 vs. the industry median of 0.99, 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 Current Ratio for a Restaurants company?
The median Current Ratio among Restaurants companies is 0.99, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current Current Ratio of 1.69 is 70.7% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Current Ratio is 1.69, which is 21% below median its own 10-year median of 2.13. 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 (LTS:0L5R) is currently considered Significantly Undervalued. The stock's GF Value™ is $120.74, compared to a current price of $56.68 — trading 53.1% below its estimated fair value. The current Current Ratio is 1.69, which is 21% below median its 10-year median of 2.13 and 70.7% above the Restaurants industry median of 0.99. Shake Shack's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Shake Shack (LTS:0L5R), the current Current Ratio is 1.69 as of Mar. 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 (LTS:0L5R) Overvalued in 2026?
Based on GuruFocus' analysis, Shake Shack stock appears to be undervalued.
The current stock price of $56.68 is trading 53.1% below its estimated GF Value™ of $120.74.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for LTS:0L5R:
Current Ratio: 1.69 (21% below median its 10-year median of 2.13)
GF Value™: $120.74 vs. price of $56.68 (53.1% below fair value)
Industry Position: 70.7% above the Restaurants median (#83 of 363)
No single metric tells the full story. See the LTS:0L5R 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.
70GF Score
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