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Shake ShackSHAK +1.52%69 Debt-to-EBITDA is 4.36 as of Jun. 2026, which is 25% below its 10-year median of 5.83. GuruFocus rates SHAK with a GF Score™ of 69/100 and a GF Value™ of $119.76 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 303 Restaurants companies, Shake Shack ranks worse than 75.25% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Shake Shack's Debt-to-EBITDA or its related term are showing as below:
SHAK'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.05 Med: 5.83 Max: 68.96
Current: 5.21
During the past 13 years, the highest Debt-to-EBITDA Ratio of Shake Shack was 68.96. The lowest was 0.05. And the median was 5.83.
SHAK's Debt-to-EBITDA is ranked worse than 75.25% of 303
companies
in the Restaurants industry
Industry Median: 2.93
vs SHAK: 5.21
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Shake Shack Debt-to-EBITDA Related Terms
Shake Shack Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Shake Shack's Debt-to-EBITDA 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.
SHAK vs ARCO, BJRI, WEN: Debt-to-EBITDA Comparison
For the Restaurants subindustry, Shake Shack's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Shake Shack's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Shake Shack (SHAK) has a Debt-to-EBITDA of 4.36 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Shake Shack. This is 25% below median its historical median of 5.83. Over the past decade, Shake Shack's Debt-to-EBITDA has ranged from 0.05 to 68.96. According to the industry distribution chart, Shake Shack ranks #228 out of 303 companies in the Restaurants industry, placing it in the top 75.2%.
Is Shake Shack's Debt-to-EBITDA too high?
Shake Shack's current Debt-to-EBITDA of 4.36 is 25% below median its 10-year median of 5.83. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 68.96. The Restaurants industry median Debt-to-EBITDA is 2.93. Shake Shack's value of 4.36 is 48.8% above this industry median. Based on the distribution chart, Shake Shack ranks #228 out of 303 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Shake Shack has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's Debt-to-EBITDA compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #228 out of 303 companies for Debt-to-EBITDA. This places Shake Shack in the lower half of its industry. The industry median Debt-to-EBITDA is 2.93. Shake Shack's value of 4.36 is 48.8% above this benchmark. Historically, Shake Shack's own Debt-to-EBITDA has ranged from 0.05 to 68.96 over the past decade. While the company's 10-year median is 5.83 vs. the industry median of 2.93, 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 Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.93, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current Debt-to-EBITDA of 4.36 is 48.8% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Shake Shack. For the Restaurants industry, the median Debt-to-EBITDA is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Debt-to-EBITDA is 4.36, which is 25% below median its own 10-year median of 5.83. 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 $119.76, compared to a current price of $72.86 — trading 39.2% below its estimated fair value. The current Debt-to-EBITDA is 4.36, which is 25% below median its 10-year median of 5.83 and 48.8% above the Restaurants industry median of 2.93. Shake Shack's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Shake Shack (SHAK), the current Debt-to-EBITDA is 4.36 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 $72.86 is trading 39.2% below its estimated GF Value™ of $119.76.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for SHAK:
Debt-to-EBITDA: 4.36 (25% below median its 10-year median of 5.83)
GF Value™: $119.76 vs. price of $72.86 (39.2% below fair value)
Industry Position: 48.8% above the Restaurants median (#228 of 303)
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.
69GF Score
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