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Shake ShackSTU:9SH +1.73%69 Interest Coverage is 9.31 as of Mar. 2026, which is 65% below its 10-year median of 26.79. 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 263 Restaurants companies, Shake Shack ranks better than 85.93% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Shake Shack's
Operating Income
for the
three
months ended in Mar. 2026 was €4 Mil. Shake Shack's Interest Expense for the
three
months ended in Mar. 2026 was €-0 Mil.
Shake Shack's interest coverage for the quarter that ended in Mar. 2026 was 9.31.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Shake Shack's Interest Coverage or its related term are showing as below:
STU:9SH'
s Interest Coverage Range Over the Past 10 Years
Min: 16.4 Med: 26.79 Max: 99.89
Current: 38.59
STU:9SH's Interest Coverage is ranked better than 85.93% of 263
companies
in the Restaurants industry
Industry Median: 6.46
vs STU:9SH: 38.59
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Shake Shack Interest Coverage Related Terms
Shake Shack Interest Coverage Historical Data
* Premium members only.
The historical data trend for Shake Shack's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:9SH vs ARCO, BJRI, WEN: Interest Coverage Comparison
For the Restaurants subindustry, Shake Shack's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Shake Shack's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (STU:9SH) has a Interest Coverage of 9.31 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shake Shack and its competitors. This is 65% below median its historical median of 26.79. Over the past decade, Shake Shack's Interest Coverage has ranged from 16.40 to 99.89. According to the industry distribution chart, Shake Shack ranks #37 out of 263 companies in the Restaurants industry, placing it in the top 14.1%.
Is Shake Shack's Interest Coverage too high?
Shake Shack's current Interest Coverage of 9.31 is 65% below median its 10-year median of 26.79. Over the past 10 years, this metric has ranged from a low of 16.40 to a high of 99.89. The Restaurants industry median Interest Coverage is 6.46. Shake Shack's value of 9.31 is 44.1% above this industry median. Based on the distribution chart, Shake Shack ranks #37 out of 263 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 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's Interest Coverage compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #37 out of 263 companies for Interest Coverage. This places Shake Shack in the top 14% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.46. Shake Shack's value of 9.31 is 44.1% above this benchmark. Historically, Shake Shack's own Interest Coverage has ranged from 16.40 to 99.89 over the past decade. While the company's 10-year median is 26.79 vs. the industry median of 6.46, 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.46, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current Interest Coverage of 9.31 is 44.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median Interest Coverage is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Interest Coverage is 9.31, which is 65% below median its own 10-year median of 26.79. 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 Interest Coverage is 9.31, which is 65% below median its 10-year median of 26.79 and 44.1% above the Restaurants industry median of 6.46. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Shake Shack (STU:9SH), the current Interest Coverage is 9.31 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:
Interest Coverage: 9.31 (65% below median its 10-year median of 26.79)
GF Value™: €105.83 vs. price of €50.08 (52.7% below fair value)
Industry Position: 44.1% above the Restaurants median (#37 of 263)
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
Get the complete analysis for STU:9SH
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