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Shake ShackSTU:9SH +1.73%69 Gross Margin % is 47.44% as of Mar. 2026, which is 5% above its 10-year median of 45.24. GuruFocus rates STU:9SH with a GF Score™ of 69/100 and a GF Value™ of €105.83 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 355 Restaurants companies, Shake Shack ranks better than 54.93% on this metric.
The historical rank and industry rank for Shake Shack's Gross Margin % or its related term are showing as below:
STU:9SH'
s Gross Margin % Range Over the Past 10 Years
Min: 40.68 Med: 45.24 Max: 48.12
Current: 47.86
During the past 13 years, the highestGross Margin % of Shake Shack was 48.12%. The lowest was 40.68%. And the median was 45.24%.
STU:9SH's Gross Margin % is ranked better than 54.93% of 355
companies
in the Restaurants industry
Industry Median: 45.45
vs STU:9SH: 47.86
Shake Shack had a gross margin of 47.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shake Shack was 3.30% per year.
Shake Shack (STU:9SH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Shake Shack had a gross margin of 47.44% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Shake Shack Gross Margin % Related Terms
Shake Shack Gross Margin % Historical Data
* Premium members only.
The historical data trend for Shake Shack's Gross Margin % 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.
STU:9SH vs ARCO, BJRI, WEN: Gross Margin % Comparison
For the Restaurants subindustry, Shake Shack's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shake Shack's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Shake Shack (STU:9SH) has a Gross Margin % of 47.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shake Shack and its competitors. This is near median its historical median of 45.24. Over the past decade, Shake Shack's Gross Margin % has ranged from 40.68 to 48.12. According to the industry distribution chart, Shake Shack ranks #160 out of 355 companies in the Restaurants industry, placing it in the top 45.1%.
Is Shake Shack's Gross Margin % too high?
Shake Shack's current Gross Margin % of 47.44% is near median its 10-year median of 45.24. Over the past 10 years, this metric has ranged from a low of 40.68 to a high of 48.12. The Restaurants industry median Gross Margin % is 45.45. Shake Shack's value of 47.44% is 4.4% above this industry median. Based on the distribution chart, Shake Shack ranks #160 out of 355 companies in the Restaurants industry, which is above the industry midpoint. 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 Gross Margin % compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #160 out of 355 companies for Gross Margin %. This puts Shake Shack in the upper half of its industry. The industry median Gross Margin % is 45.45. Shake Shack's value of 47.44% is 4.4% above this benchmark. Historically, Shake Shack's own Gross Margin % has ranged from 40.68 to 48.12 over the past decade. While the company's 10-year median is 45.24 vs. the industry median of 45.45, 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.45, based on 355 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current Gross Margin % of 47.44% is 4.4% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median Gross Margin % is 45.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Gross Margin % is 47.44%, which is near median its own 10-year median of 45.24. 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 (STU:9SH) is currently considered Significantly Undervalued. The stock's GF Value™ is €105.83, compared to a current price of €50.08 — trading 52.7% below its estimated fair value. The current Gross Margin % is 47.44%, which is near median its 10-year median of 45.24 and 4.4% above the Restaurants industry median of 45.45. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Shake Shack (STU:9SH), the current Gross Margin % is 47.44% 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 (STU:9SH) Overvalued in 2026?
Based on GuruFocus' analysis, Shake Shack stock appears to be undervalued.
The current stock price of €50.08 is trading 52.7% below its estimated GF Value™ of €105.83.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for STU:9SH:
Gross Margin %: 47.44% (near median its 10-year median of 45.24)
GF Value™: €105.83 vs. price of €50.08 (52.7% below fair value)
Industry Position: 4.4% above the Restaurants median (#160 of 355)
No single metric tells the full story. See the STU:9SH 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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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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