Graduation Year
2024
Graduation Month
December
Document Type
Thesis - Campus Access Only
Degree Name
Bachelor of Science
School or Department
Business School
Major
Finance
Faculty Mentor Department
Business School
Faculty Mentor
Robert Sonors
Subject Categories
Corporate Finance
Abstract
This report examines the impact of inflation on Shake Shack’s profitability in a post-pandemic environment, comparing its performance to key competitors in the fast-food industry. Using financial ratios like gross profit margin, net profit margin, return on assets, and return on equity, the analysis reveals how Shake Shack has survived economic challenges posed by elevated inflation and interest rates. The findings indicate that Shake Shack has maintained a strong gross profit margin, demonstrating its ability to pass on increased costs to consumers, which is possible based on its premium business model. However, the company faces challenges along other profitability ratios, likely a result of higher operating costs. Despite these challenges, Shake Shack shows promising trends in returns on assets and equity, which suggests a movement toward future profitability.
Honors College Research Project
1
GLI Capstone Project
no
Recommended Citation
Northey, Kevin M., "The Impact of Inflation on Shake Shack’s Profitability in a Post-Pandemic Environment" (2024). Undergraduate Theses, Professional Papers, and Capstone Artifacts. 527.
https://scholarworks.umt.edu/utpp/527
© Copyright 2024 Kevin M. Northey