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10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Shake Shack's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 4.25%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Shake Shack's 10-Year ROIIC % or its related term are showing as below:
SHAK's 10-Year ROIIC % is ranked better than 55.33% of 291
companies
in the Restaurants industry
Industry Median: 2.33
vs SHAK: 4.25
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Shake Shack 10-Year ROIIC % Related Terms
Shake Shack 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Shake Shack's 10-Year ROIIC % 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: 10-Year ROIIC % Comparison
For the Restaurants subindustry, Shake Shack's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Shake Shack's 10-Year ROIIC % falls into.
Shake Shack's 10-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
10-Year ROIIC %
=
10-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
10-Year Incremental Invested Capital**
=
( 58.7092422 (Dec. 2025) - 5.9292 (Dec. 2015) )
/
( 1547.118 (Dec. 2025) - 304.154 (Dec. 2015) )
=
52.7800422
/
1242.964
=
4.25%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Shake Shack (SHAK) has a 10-Year ROIIC % of 4.25 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Shake Shack and its competitors. According to the industry distribution chart, Shake Shack ranks #130 out of 291 companies in the Restaurants industry, placing it in the top 44.7%.
Is Shake Shack's 10-Year ROIIC % too high?
Shake Shack's current 10-Year ROIIC % is 4.25. The Restaurants industry median 10-Year ROIIC % is 2.33. Shake Shack's value of 4.25 is 82.4% above this industry median. Based on the distribution chart, Shake Shack ranks #130 out of 291 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 10-Year ROIIC % compare to ARCO and BJRI?
According to the Restaurants industry distribution chart, Shake Shack ranks #130 out of 291 companies for 10-Year ROIIC %. This puts Shake Shack in the upper half of its industry. The industry median 10-Year ROIIC % is 2.33. Shake Shack's value of 4.25 is 82.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Restaurants company?
The median 10-Year ROIIC % among Restaurants companies is 2.33, based on 291 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shake Shack's current 10-Year ROIIC % of 4.25 is 82.4% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Shake Shack and its competitors. For the Restaurants industry, the median 10-Year ROIIC % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shake Shack's current 10-Year ROIIC % is 4.25. 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 10-Year ROIIC % is 4.25 and 82.4% above the Restaurants industry median of 2.33. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Shake Shack (SHAK), the current 10-Year ROIIC % is 4.25 as of Dec. 2025. 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:
10-Year ROIIC %: 4.25
GF Value™: $122.02 vs. price of $57.10 (53.2% below fair value)
Industry Position: 82.4% above the Restaurants median (#130 of 291)
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
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10-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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