Shake Shack Inc
NYSE:SHAK
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
P/OCF
Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.
Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.
Valuation Scenarios
If P/OCF returns to its 3-Year Average (26.1), the stock would be worth $135.82 (32% upside from current price).
| Scenario | P/OCF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 19.8 | $103.02 |
0%
|
| 3-Year Average | 26.1 | $135.82 |
+32%
|
| 5-Year Average | 31.4 | $163.47 |
+59%
|
| Industry Average | 11.9 | $62.02 |
-40%
|
| Country Average | 13.3 | $69.47 |
-33%
|
Forward P/OCF
Today’s price vs future operating cash flow
Peer Comparison
| Market Cap | P/OCF | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Shake Shack Inc
NYSE:SHAK
|
4.4B USD | 19.8 | 96.2 | |
| US |
|
McDonald's Corp
NYSE:MCD
|
213.2B USD | 20.2 | 24.9 | |
| US |
|
Starbucks Corp
NASDAQ:SBUX
|
112.4B USD | 28.6 | 82.1 | |
| UK |
|
Compass Group PLC
LSE:CPG
|
47.7B GBP | 0.2 | 0.3 | |
| US |
|
Yum! Brands Inc
NYSE:YUM
|
44.4B USD | 22.1 | 28.5 | |
| US |
|
Chipotle Mexican Grill Inc
NYSE:CMG
|
44.6B USD | 21.1 | 29.1 | |
| CA |
|
Restaurant Brands International Inc
NYSE:QSR
|
28B USD | 17.9 | 36.1 | |
| IN |
|
Eternal Ltd
NSE:ETERNAL
|
2.4T INR | -3 087.2 | 1 002.3 | |
| US |
|
Darden Restaurants Inc
NYSE:DRI
|
23.1B USD | 13.3 | 20.9 | |
| CN |
|
Yum China Holdings Inc
NYSE:YUMC
|
17.3B USD | 11.8 | 18.6 |
Market Distribution
| Min | 0 |
| 30th Percentile | 8.8 |
| Median | 13.3 |
| 70th Percentile | 20.1 |
| Max | 3 188 432.5 |
Other Multiples
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.