NYSE Shariah screener · October 2026

Is Shake Shack Inc. (SHAK) Halal?

PASS

Shake Shack Inc. · NYSE: SHAK · Consumer Discretionary

The short answer

Shake Shack passes all three Shariah gates: it operates a permissible fast-casual restaurant business (beer and wine on the menu assessed as incidental), carries $248.3M of interest-bearing debt (10.1% of its ~$2.46 billion market cap), and interest income of about 0.01% of revenue is far under the 5% ceiling.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Shake Shack Inc., founded in 2004 and headquartered in New York, NY, operates and licenses fast-casual burger restaurants. Per its FY2025 Form 10-K (Note 1, Nature of Operations), as of December 31, 2025 there were 659 Shacks system-wide — 373 company-operated and 286 licensed — serving burgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine and more, across the US and markets including London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo and Seoul.

The 10-K discloses that Shacks serve beer and wine — its proprietary ShackMeister Ale (brewed by Brooklyn Brewery) and Shack Red and Shack White wines — alongside the food menu. This is an incidental part of a burger fast-casual concept, not a core business line: FY2025 revenue was $1,445,306 thousand, of which Shack food sales were $1,391,166 thousand. The company is not an interest-based lender and is not involved in tobacco, gambling or pork. The alcohol offering is disclosed here for transparency; assessed as immaterial, the business passes gate 1.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (10.1%, ceiling 33%). Per Shake Shack's Q2 2026 condensed consolidated balance sheet (July 1, 2026, published with its August 5, 2026 earnings release), long-term debt was $248,255 thousand. The company's only interest-bearing debt is its $250,000 thousand aggregate principal amount of 0% Convertible Senior Notes due 2028, described in Note 8 (Debt) of the FY2025 Form 10-K (carried net of discount and debt issuance costs). No short-term borrowings are reported. Operating lease liabilities ($621,756 thousand long-term plus $67,164 thousand current) are excluded — they are not interest-bearing debt.

$248.3 million of interest-bearing debt against a market capitalization of about $2.46 billion (Finnhub, October 2, 2026) is 10.1%, well under the 33% ceiling. Cash and cash equivalents of $307,962 thousand at July 1, 2026 represent about 12.5% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.01%, ceiling 5%). Shake Shack's FY2025 Form 10-K separately discloses interest income in a Note 19 (segment reporting) footnote: "Interest income was $165, $761 and $2,443, respectively in fiscal 2025, 2024 and 2023" (in thousands). FY2025 interest income of $165 thousand against FY2025 total revenue of $1,445,306 thousand is about 0.01%, far under the 5% ceiling.

Note: the Q2 2026 condensed income statement does not separately break out interest income — it reports only "Other income, net" of $2,602 thousand and "Interest expense" of $553 thousand for the thirteen weeks ended July 1, 2026 — so the verified FY2025 figure from the 10-K is used for this gate.

Key figures used

Business: fast-casual burger restaurants - 659 Shacks system-wide at Dec 31, 2025 (373 company-operated, 286 licensed); 703 locations by Q2 2026; menu: Angus burgers, chicken, hot dogs, fries, shakes, frozen custard; founded 2004, HQ New York, NY
Haram assessment: no interest-based lending; no tobacco/gambling/pork; beer and wine served (ShackMeister Ale, Shack Red/White) - assessed incidental to a burger fast-casual concept, disclosed for transparency
Debt: $248,255K long-term debt at July 1, 2026 ($250M 0% Convertible Notes due 2028, Note 8) - no short-term borrowings; 10.1% of ~$2.46B market cap (Finnhub, Oct 2, 2026) - well under the 33% ceiling
Cash: $307,962K cash and cash equivalents at July 1, 2026 (~12.5% of market cap)
Interest income: $165K in FY2025 (Note 19 footnote, in thousands) vs $1,445,306K revenue = 0.01% - far under the 5% ceiling (FY2024: $761K; FY2023: $2,443K)
Market data: NYSE-listed; still listed on NYSE (confirmed October 2, 2026; live quotes, no delisting)
Third-party: Zoya publishes a SHAK page and currently flags it non-compliant (its page text is internally contradictory); no verifiable Musaffa or ShariaPortfolio rating found

Frequently asked questions

What does Shake Shack do?

Shake Shack Inc. (NYSE: SHAK) is a fast-casual restaurant company founded in 2004 in New York City and headquartered there. Per its FY2025 Form 10-K, it operated and licensed 659 Shake Shack restaurants ('Shacks') system-wide as of December 31, 2025 - 373 company-operated and 286 licensed - across the US and international markets including London, Hong Kong, Shanghai, Singapore, Mexico City, Istanbul, Dubai, Tokyo and Seoul. Its menu centers on Angus beef burgers, crispy chicken, hot dogs, crinkle-cut fries, hand-spun shakes and frozen custard. By Q2 2026 the system had grown to 703 locations.

Is Shake Shack's business Shariah compliant?

Shake Shack runs a food business - burgers, chicken, fries, shakes and frozen custard - not interest-based lending, and it is not involved in tobacco, gambling or pork production. Its 10-K does disclose that Shacks serve beer and wine (its proprietary ShackMeister Ale and Shack Red and Shack White wines) alongside the food menu. Alcohol is an incidental part of a burger fast-casual menu rather than a core business line - the company's revenue comes overwhelmingly from Shack food sales ($1,391,166 thousand of $1,445,306 thousand in FY2025) - so the business passes this screener's first gate, though the alcohol offering is disclosed here for transparency.

How much interest-bearing debt does Shake Shack have?

Shake Shack's only interest-bearing debt is its $250 million of 0% Convertible Senior Notes due 2028, described in Note 8 (Debt) of its FY2025 Form 10-K. Carried net of discount and issuance costs, long-term debt was $247,731 thousand at December 31, 2025 and $248,255 thousand at July 1, 2026 per its Q2 2026 balance sheet. The company reports no short-term borrowings. Operating lease liabilities ($621,756 thousand long-term plus $67,164 thousand current) are excluded as they are not interest-bearing debt. $248.3 million against a market cap of about $2.46 billion is 10.1%, well under the 33% ceiling.

How much interest income does Shake Shack earn?

Shake Shack's FY2025 Form 10-K separately discloses interest income in a Note 19 segment-reporting footnote: 'Interest income was $165, $761 and $2,443, respectively in fiscal 2025, 2024 and 2023' (in thousands). FY2025 interest income of $165 thousand against FY2025 total revenue of $1,445,306 thousand is about 0.01% - far under the 5% non-compliant income ceiling. (The Q2 2026 income statement does not separately break out interest income - it shows only 'Other income, net' of $2,602 thousand and 'Interest expense' of $553 thousand - so the verified FY2025 figure is used.)

What do third-party Shariah screeners say about Shake Shack?

Zoya publishes a Shake Shack (SHAK) page and currently flags the stock as not Shariah-compliant, though the FAQ text on its page is internally contradictory about interest income, so treat its published reasoning with caution. I could not verify a Musaffa rating page for SHAK or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).