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Shake Shack Inc. was formed on September 23, 2014 as a Delaware corporation for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of SSE Holdings, LLC and its subsidiaries ("SSE Holdings"). Shake Shack Inc. is the sole managing member of SSE Holdings and, as sole managing member, it operates and controls all of the business a…
Operating margin is thin at 4.32%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue up 15.4% YoY with margins expanding 4.1pp.
Net debt of $524M represents 9.3x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$1.49B
▲ +15.4% YoY
Net Income (TTM)
$41M
▲ +348.0% YoY
Op. Margin
3.82%
▲ +4.1pp YoY
ROIC
2.53%
▲ +2.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$16M
▲ +58.5% YoY
Op. Cash Flow (TTM)
$200M
▲ +29.9% YoY
Net Debt
$605M
Cash & Equiv.
$314M
3Y CAGR: +17.1%
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