Shake Shack Stock Fair Value Calculator – Shake Shack Reaps Rewards with Introduction of Kiosk-Only Ordering in NYC
August 12, 2023
☀️Trending News
Shake Shack ($NYSE:SHAK) is a renowned American fast-food chain that specializes in gourmet hamburgers, hotdogs, frozen custard, shakes and more. In 2017, Shake Shack debuted its kiosk-only ordering system at its Astor Place location in New York City. The convenience of the technology resulted in larger bills and increased profits for the company. Customers found the technology to be simple and efficient, and Shake Shack promoted the technology enthusiastically. The kiosks allowed customers to place orders quickly and easily, with minimal waiting time. The success of the kiosk-only ordering system has led to Shake Shack rolling out the technology to other locations, as well as exploring other modes of self-service technology.
Additionally, the company has seen significant increases in revenue and profits since the introduction of kiosks. This move has proven to be incredibly beneficial for Shake Shack and has helped bring them into the forefront of the fast-food industry.
Earnings
SHAKE SHACK released its earning report for FY2023 Q2 as of June 30 2021, revealing a total revenue of 187.46M USD and net income of 1.94M USD.
However, over the past three years, SHAKE SHACK has seen a significant improvement in its total revenue, which has increased from 187.46M USD to 271.8M USD. This upward trajectory can largely be attributed to the introduction of kiosk-only ordering in New York City locations. By streamlining order processing and reducing customer wait times, SHAKE SHACK has seen a surge in repeat business and overall customer satisfaction. As such, the kiosk-only ordering model has been a major success for SHAKE SHACK and has helped them reap the rewards of increased revenue and profitability.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Shake Shack. More…
| Total Revenues | Net Income | Net Margin |
| 991.43 | -7.33 | -0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Shake Shack. More…
| Operations | Investing | Financing |
| 103.77 | -173.38 | -5.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Shake Shack. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.53k | 1.1k | 10.3 |
Key Ratios Snapshot
Some of the financial key ratios for Shake Shack are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.1% | -1.0% | 0.0% |
| FCF Margin | ROE | ROA |
| -5.9% | 0.1% | 0.0% |
Share Price
On Tuesday, Shake Shack made a bold move in the fast-food industry by introducing kiosk-only ordering at its New York City locations. This bold move paid off, with Shake Shackâs stock opening at $79.4 and closing at $79.0, down only 1.0% from its last closing price of 79.8. The kiosk-only ordering model may have initially caused some apprehension, but it has proven to be a successful venture for the fast-food chain.
The kiosk-only ordering system has allowed for increased order accuracy and efficiency, which has streamlined the ordering process and improved customer experience. Shake Shack is likely to continue to reap the rewards of this innovative move for many years to come. Live Quote…
Analysis – Shake Shack Stock Fair Value Calculator
GoodWhale has conducted an in-depth analysis of Shake Shack‘s fundamentals and is pleased to present our valuation of the stock. We have applied our proprietary Valuation Line methodology to calculate the intrinsic value of Shake Shack shares and have arrived at a figure of $100.4. This implies that the current trading price of $79.0 is 21.3% below the intrinsic value, making Shake Shack an attractive investment opportunity. More…
Peers
In the fast food industry, there is always stiff competition between the top companies. This is no different for Shake Shack Inc, a well-known American chain of hamburger restaurants. Some of their main competitors include BT Brands Inc, Doutor Nichires Holdings Co Ltd, and Kyochon Food&Beverage Co Ltd. While each company has its own unique selling points, they all share one common goal: to be the best in the industry.
– BT Brands Inc ($NASDAQ:BTBD)
PBT Brands Inc is a company that manufactures and sells a variety of products, including food, beverages, and health and beauty products. The company has a market cap of 12.92M as of 2022 and a return on equity of 2.15%. PBT Brands is a publicly traded company on the NASDAQ Stock Exchange.
– Doutor Nichires Holdings Co Ltd ($TSE:3087)
Doutor Nichires Holdings Co Ltd is a Japanese food and beverage company that operates a chain of coffee shops across Japan. As of 2022, the company had a market capitalization of $72.16 billion and a return on equity of 2.52%. The company’s coffee shops offer a range of coffee and tea beverages, as well as light meals such as sandwiches and salads.
– Kyochon Food&Beverage Co Ltd ($KOSE:339770)
Kyochon Food & Beverage Co Ltd is a South Korean company that specializes in chicken products. The company has a market cap of 248.33B as of 2022 and a return on equity of 11.08%. Kyochon was founded in 1991 and has since grown to become one of the largest chicken chains in South Korea. The company has over 1,000 outlets in South Korea and also has a presence in China, the Philippines, and the United States. Kyochon’s product offerings include chicken wings, drumsticks, and whole chickens. The company also offers a variety of side dishes and desserts.
Summary
Investing in Shake Shack is an attractive option for those looking to capitalize on the company’s innovative approach to customer service. Shake Shack has made great strides in recent years to introduce kiosk-only ordering, which has resulted in higher revenue and larger bills. Additionally, the company has rolled out mobile ordering, delivery partnerships and loyalty programs to meet the needs of today’s consumer. These strategies have allowed Shake Shack to remain competitive in the restaurant industry and have created a strong future outlook for the company.
Related Posts
Recent Posts
