Capital intensity remains a significant drag on liquidity, with capital expenditures consuming between 9.1% and 14.8% of revenue over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 221.16M | 222.35M | 171.16M | 132.14M | 76.74M | 58.4M | 37.35M | 89.57M | 85.39M | 70.88M | 54.28M | 41.26M | 13.58M | 12.92M | 11.68M |
| Operating CF Margin % | - | 15.38% | 13.66% | 12.15% | 8.52% | 7.89% | 7.14% | 15.07% | 18.59% | 19.75% | 20.22% | 21.65% | 11.46% | 15.67% | 20.47% |
| Operating CF Growth % | 108.09% | 29.91% | 29.53% | 72.19% | 31.4% | 56.37% | -58.3% | 4.89% | 20.48% | 30.57% | 31.57% | 203.72% | 5.11% | 10.67% | - |
| Net Income | 41.19M | 49.71M | 10.21M | 20.99M | -23.11M | -6.02M | -45.53M | 19.83M | 21.95M | 8.88M | 22.15M | 3.12M | 2.12M | 5.42M | 4.13M |
| Depreciation & Amortization | 111.27M | 108.79M | 104.61M | 93.04M | 74.3M | 60.24M | 50.24M | 40.7M | 29M | 21.7M | 14.5M | 10.22M | 5.81M | 3.54M | 2.16M |
| Stock-Based Compensation | 14.96M | 19.5M | 15.91M | 14.89M | 13.33M | 8.7M | 5.56M | 0 | 6.14M | 5.62M | 5.35M | 16.68M | 165K | 93K | 450K |
| Deferred Taxes | 15.67M | 16.62M | -1.05M | -9.07M | -5.01M | -14.47M | -1.36M | -6.06M | 788K | 146.33M | -523K | -734K | -93K | 7K | -34K |
| Other Non-Cash Items | 103.16M | 95.19M | 110.92M | 70.25M | 62.65M | 54.02M | 57.04M | 52.56M | 1.6M | -126.29M | -365K | 290K | 297K | 62K | 96K |
| Working Capital Changes | -68.81M | -67.45M | -69.44M | -57.95M | -45.41M | -44.06M | -28.61M | -17.45M | 25.92M | 14.62M | 13.17M | 11.68M | 5.29M | 3.8M | 4.87M |
| Change in Receivables | -7.09M | -9.55M | -2.84M | -2.97M | 9.14M | -4.19M | 1.01M | 10.73M | 5.53M | 6.42M | 2.97M | 775K | -1.75M | 26K | -1.08M |
| Change in Inventory | -1.3M | -1.17M | -610K | -1.22M | -334K | -962K | -667K | -472K | -491K | -452K | -263K | -14K | -198K | -88K | -35K |
| Change in Payables | 4M | -1.53M | 3.36M | 687K | 3.54M | -6.45M | 4.63M | 4.25M | 3.16M | 1.24M | 839K | 201K | 1.21M | 1.22M | -210K |
| Cash from Investing | -183.69M | -165.85M | -66.08M | -132.32M | -143.42M | -144.89M | -69.4M | -80.69M | -86.6M | -61.94M | -114.76M | -34.51M | -28.52M | -16.19M | -11.04M |
| Capital Expenditures | -183.69M | -165.85M | -135.5M | -146.17M | -142.56M | -101.5M | -69.04M | -106.51M | -87.53M | -61.53M | -54.43M | -32.12M | -28.52M | -16.19M | -11.04M |
| CapEx % of Revenue | 12.32% | 11.47% | 10.82% | 13.44% | 15.83% | 13.72% | 13.2% | 17.91% | 19.06% | 17.15% | 20.27% | 16.85% | 24.06% | 19.64% | 19.35% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | -79K | 0 | 16K | 5K | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 79K | 0 | -16K | -5K | -60.33M | -2.4M | 0 | 0 | 0 |
| Cash from Financing | -36.74M | -17.1M | -9.02M | -5.68M | -5.2M | 242.02M | 141.82M | 3.46M | 4.45M | 965K | 1.23M | 61.43M | 4.53M | 313K | -2.17M |
| Debt Issued (Net) | -21.84M | -5.51M | -3.96M | -3.27M | -2.97M | 241.06M | -2.21M | -1.93M | 680K | 917K | -248K | 0 | 32M | 313K | -1.93M |
| Equity Issued (Net) | 69K | 123K | 1.63M | 0 | 0 | 0 | 145M | 9.2M | 0 | 0 | 0 | 109.29M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11.13M | -27.07M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -949K | -314K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -14.97M | -11.71M | -6.68M | -2.41M | -2.23M | 965K | -970K | -3.81M | 3.77M | 48K | 1.48M | -36.74M | -398K | 0 | -246K |
| Net Change in Cash | 729K | 39.41M | 96.06M | -5.87M | -71.89M | 155.53M | 109.77M | 12.35M | 3.24M | 9.9M | -59.24M | 68.17M | -10.4M | -2.96M | -1.53M |
| Free Cash Flow | 37.47M | 56.51M | 35.66M | -14.03M | -65.82M | -43.09M | -31.69M | -16.94M | -2.13M | 9.35M | -148K | 9.14M | -14.93M | -3.27M | 642K |
| FCF Margin % | 2.51% | 3.91% | 2.85% | -1.29% | -7.31% | -5.82% | -6.06% | -2.85% | -0.46% | 2.6% | -0.06% | 4.8% | -12.6% | -3.97% | 1.13% |
| FCF Growth % | -6.13% | 58.48% | 354.18% | 78.69% | -52.74% | -35.99% | -87.1% | -695.12% | -122.79% | 6414.19% | -101.62% | 161.22% | -356.61% | -609.35% | - |
| FCF per Share | 0.93 | 1.35 | 0.81 | -0.32 | -1.68 | -1.10 | -0.85 | -0.53 | -0.07 | 0.36 | -0.01 | 0.67 | -1.33 | -2.61 | 0.51 |
| FCF Conversion (FCF/Net Income) | 0.91x | 4.86x | 16.77x | 6.52x | -3.61x | -12.81x | -0.89x | 4.52x | 5.63x | -221.49x | 4.36x | -4.70x | 6.41x | 2.38x | 2.83x |
| Interest Paid | 0 | 0 | 882K | 882K | 252K | 252K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19K | 0 |
| Taxes Paid | 0 | 0 | 6.53M | 6.53M | 3.73M | 2.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 639K | 0 |
Capital Intensity Diluting Returns
As reported in recent financial filings, SHAK's operating cash flow frequently decouples from net income, with OCF/NI ratios reaching extreme levels like 15.03 in 2024Q1, suggesting that reported earnings are a poor proxy for the actual cash-generating capacity of the underlying restaurant operations.
The significant gap between net income and operating cash flow indicates that non-cash charges and working capital fluctuations are heavily influencing the bottom line. Investors should monitor this divergence, as it suggests that the company's profitability is not yet translating into consistent, high-quality cash inflows.
Based on quarterly data, SHAK's free cash flow margins have remained inconsistent, fluctuating between -4.7% and 7.5% over the last ten quarters, which reflects the ongoing challenge of balancing aggressive unit expansion with the need to generate sustainable cash returns for shareholders.
The inability to maintain positive FCF margins across all periods highlights the capital-intensive nature of the current growth strategy. This trajectory suggests that the company remains in a heavy investment phase where cash generation is secondary to footprint expansion.
According to historical cash flow statements, SHAK's capital expenditure as a percentage of revenue has consistently hovered between 9.1% and 14.8%, demonstrating a high level of capital intensity required to maintain and expand the company's premium, high-design physical footprint.
This persistent level of investment suggests that the company is prioritizing new site development over cash preservation. The high capex burden may limit the company's ability to self-fund growth if unit-level economics do not improve to offset these substantial build-out costs.
Analysis of recent SEC filings reveals that SHAK has experienced consistent working capital outflows, with negative changes reaching as high as $28.7 million in 2026Q1, indicating that the company's operational cycle is currently consuming rather than providing incremental cash liquidity.
These recurring outflows suggest potential inefficiencies in inventory management or timing mismatches in payables and receivables. Investors should investigate whether these trends are structural consequences of the new drive-thru model or temporary issues related to supply chain scaling.
Quick answers to the most common questions about buying SHAK stock.
Shake Shack Inc. (SHAK) generated $222.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Shake Shack Inc. (SHAK) generated $56.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Shake Shack Inc. (SHAK) spent $165.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.