Shake Shack, Inc. — Earnings Quality Grade F
SHAK · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change +0 days YoY
AR growth 25.4% exceeds revenue growth 15.4%
Revenue 15.4%, CFFO 29.9%. Cash follows revenue
Expense Quality
Inventory 19.4% vs COGS 11.6%. Normal
CapEx growth 22.4% vs revenue 15.4%. Normal
SG&A/Gross Profit = 41.1%. Normal
Gross margin 47.6%, change +1.8pp. Stable
Cash Flow Quality
CFFO/NI = 4.86. Profits backed by cash
FCF $0.1B, FCF/NI = 1.24
Accruals ratio = -9.3%. Low accruals
Cash $0.4B covers only 40% of debt $0.9B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 4.9x (>4x). Financial stress
Other assets -5.3% vs revenue 15.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
No goodwill
Manipulation Score
M-Score = -2.78 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25