Is Shake Shack Inc. (SHAK) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 22.6% / 30% | 9.0% / 30% | 1.3% / 30% | 0.76% / 5% | ✓ HALAL |
| DJIM | 22.6% / 33% | 9.0% / 33% | 1.3% / 33% | 0.76% / 5% | ✓ HALAL |
| MSCI | 47.6% / 33% | 19.0% / 33% | 2.7% / 33% | 0.76% / 5% | ✗ NOT HALAL |
| S&P | 22.6% / 33% | 9.0% / 33% | 1.3% / 33% | 0.76% / 5% | ✓ HALAL |
| FTSE | 47.6% / 33% | 19.0% / 33% | 2.7% / 50% | 0.76% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 40.2% | |
| Operating Margin | 5.1% | |
| Net Margin | 3.2% | |
| Return on Equity (ROE) | 9.5% | |
| Return on Assets (ROA) | 2.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $222M |
| Free Cash Flow | $57M |
| Total Debt | $902M |
| Debt-to-Equity | 162.9 |
| Current Ratio | 1.8 |
| Total Assets | $1.9B |
Price & Trading
| Last Close | $85.08 |
| 50-Day MA | $92.25 |
| 200-Day MA | $100.75 |
| Avg Volume | 1.5M |
| Beta | 1.8 |
|
52-Week Range
$72.93
| |
About Shake Shack Inc. (SHAK)
Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. It offers burger, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is based in New York, New York.
Purification Calculator
As a halal stock with 0.76% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Shake Shack Inc. (SHAK) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Shake Shack Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Shake Shack Inc.'s debt ratio?
Shake Shack Inc.'s debt ratio is 22.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 47.6%.
Does Shake Shack Inc. require dividend purification?
Yes, Shake Shack Inc. has an impermissible income ratio of 0.76%, which means 0.76% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Shake Shack Inc.'s key financial metrics?
Shake Shack Inc. has a market capitalization of $3.5B, trailing P/E ratio of 74.6, and revenue of $1.4B. The company maintains a gross margin of 40.2% and a net margin of 3.2%. Return on equity stands at 9.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.