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Net margin is calculated as Net Income divided by its Revenue. Shake Shack's Net Income for the
three
months ended in Mar. 2026 was $-0 Mil. Shake Shack's Revenue for the
three
months ended in Mar. 2026 was $367 Mil. Therefore, Shake Shack's net margin for the quarter that ended in Mar. 2026 was -0.08%.
The historical rank and industry rank for Shake Shack's Net Margin % or its related term are showing as below:
SHAK'
s Net Margin % Range Over the Past 10 Years
Min: -8.06 Med: 1.34 Max: 4.64
Current: 2.76
SHAK's Net Margin % is ranked better than 54.82% of 363
companies
in the Restaurants industry
Industry Median: 2.27
vs SHAK: 2.76
Shake Shack (NYSE:SHAK) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Shake Shack Net Margin % Related Terms
Shake Shack Net Margin % Historical Data
* Premium members only.
The historical data trend for Shake Shack's Net 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.
For the Restaurants subindustry, Shake Shack's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Net Margin % distribution charts can be found below:
* The bar in red indicates where Shake Shack's Net 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.
Shake Shack (SHAK) has a Net Margin % of -0.08% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Shake Shack and its competitors. According to the industry distribution chart, Shake Shack ranks #164 out of 363 companies in the Restaurants industry, placing it in the top 45.2%.
Is Shake Shack's Net Margin % too high?
Shake Shack's current Net Margin % is -0.08%. Based on the distribution chart, Shake Shack ranks #164 out of 363 companies in the Restaurants industry, which is above the industry midpoint. Overall, Shake Shack has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shake Shack's Net Margin % compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #164 out of 363 companies for Net Margin %. This puts Shake Shack in the upper half of its industry. The industry median Net Margin % is 2.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.27, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median Net Margin % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current Net Margin % is -0.08%. 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 $122.02, compared to a current price of $57.10 — trading 53.2% below its estimated fair value. The current Net Margin % is -0.08%. Shake Shack's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Shake Shack (SHAK), the current Net Margin % is -0.08% 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 (SHAK) Overvalued in 2026?
Based on GuruFocus' analysis, Shake Shack stock appears to be undervalued.
The current stock price of $57.10 is trading 53.2% below its estimated GF Value™ of $122.02.
GuruFocus considers Shake Shack to be Significantly Undervalued.
Key valuation signals for SHAK:
Net Margin %: -0.08%
GF Value™: $122.02 vs. price of $57.10 (53.2% below fair value)
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.
76GF Score
Get the complete analysis for SHAK
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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