Shake Shack Inc
NYSE:SHAK

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Shake Shack Inc
NYSE:SHAK
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Price: 101.78 USD -2.78% Market Closed
Market Cap: $4.3B

EV/EBITDA

24.3
Current
29%
Cheaper
vs 3-y average of 34.3

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
24.3
=
Enterprise Value
$3.8B
/
EBITDA
$174.4m

Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBITDA
24.3
=
Enterprise Value
$3.8B
/
EBITDA
$174.4m

Valuation Scenarios

Shake Shack Inc is trading below its 3-year average

If EV/EBITDA returns to its 3-Year Average (34.3), the stock would be worth $143.57 (41% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-51%
Maximum Upside
+60%
Average Upside
2%
Scenario EV/EBITDA Value Implied Price Upside/Downside
Current Multiple 24.3 $101.78
0%
3-Year Average 34.3 $143.57
+41%
5-Year Average 39 $163.32
+60%
Industry Average 11.9 $49.98
-51%
Country Average 14.4 $60.05
-41%

Forward EV/EBITDA
Today’s price vs future ebitda

Today's Enterprise Value EBITDA Forward EV/EBITDA
$3.8B
/
Jan 2026
$174.4m
=
24.3
Current
$3.8B
/
Dec 2026
$242.9m
=
15.8
Forward
$3.8B
/
Dec 2027
$284.4m
=
13.5
Forward
$3.8B
/
Dec 2028
$337.5m
=
11.4
Forward

Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.

Peer Comparison

All Multiples
EV/EBITDA
P/E
All Countries
Close
Market Cap EV/EBITDA P/E
US
Shake Shack Inc
NYSE:SHAK
4.3B USD 24.3 95
US
McDonald's Corp
NYSE:MCD
214.9B USD 20.5 25.1
US
Starbucks Corp
NASDAQ:SBUX
111.4B USD 23.1 81.4
UK
Compass Group PLC
LSE:CPG
46.4B GBP 13.1 0.3
US
Chipotle Mexican Grill Inc
NYSE:CMG
47B USD 19.8 30.6
US
Yum! Brands Inc
NYSE:YUM
44.4B USD 19.3 28.5
CA
Restaurant Brands International Inc
NYSE:QSR
27.3B USD 14.2 46.2
IN
Eternal Ltd
NSE:ETERNAL
2.4T INR 386.9 1 036
US
Darden Restaurants Inc
NYSE:DRI
22.6B USD 13 20.4
CN
Yum China Holdings Inc
NYSE:YUMC
17.2B USD 8.9 18.5

Market Distribution

Higher than 75% of companies in the United States of America
Percentile
75th
Based on 9 875 companies
75th percentile
24.3
Low
0 — 10
Typical Range
10 — 21.5
High
21.5 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 10
Median 14.4
70th Percentile 21.5
Max 1 767 274.1

Shake Shack Inc
Glance View

Shake Shack Inc. began as a humble hot dog cart in Madison Square Park, New York City, back in 2001, part of a public art installation by restaurateur Danny Meyer’s Union Square Hospitality Group. Fast forward to the present day, and Shake Shack has blossomed into a globally recognized fast-casual restaurant chain known for its high-quality burgers, crinkle-cut fries, and indulgent milkshakes. The company operates primarily on a straightforward yet effective business model: deliver premium-quality fast food in a friendly, vibrant environment, thereby attracting a broad demographic willing to pay a small premium compared to other fast-food alternatives. This premium positioning is critical to its strategy, allowing for higher revenue per transaction and fostering brand loyalty. Shake Shack's success largely hinges on its strategic use of innovative sourcing and brand alignment. By emphasizing fresh, simple, high-quality ingredients—like 100% all-natural Angus beef and hormone-free dairy—the chain differentiates itself from traditional fast-food players. In addition to its food offerings, Shake Shack smartly capitalizes on its strong brand image and customer experience to engage loyal fans through exclusive offers, collaborations, and seasonal menu items that generate buzz and repeat visits. Expansion remains a crucial growth pillar, with efforts to broaden its footprint both domestically and internationally, carefully balancing new outlet openings with operational efficiency to harness economies of scale. This savvy mix of upscale fast-casual dining, brand magnetism, and calculated growth has become the winning formula that fuels Shake Shack's sustained momentum in the ever-competitive restaurant landscape.

SHAK Intrinsic Value
74.48 USD
Overvaluation 27%
Intrinsic Value
Price $101.78
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