Shake Shack Inc
NYSE:SHAK

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Shake Shack Inc
NYSE:SHAK
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Price: 103.02 USD 5.56% Market Closed
Market Cap: $4.4B

P/OCF

19.8
Current
24%
Cheaper
vs 3-y average of 26.1

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.8
=
Market Cap
$3.9B
/
Operating Cash Flow
$222.4m

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.8
=
Market Cap
$3.9B
/
Operating Cash Flow
$222.4m

Valuation Scenarios

Shake Shack Inc is trading below its 3-year average

If P/OCF returns to its 3-Year Average (26.1), the stock would be worth $135.82 (32% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-40%
Maximum Upside
+59%
Average Upside
5%
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

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
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

In line with most companies in the United States of America
Percentile
69th
Based on 9 488 companies
69th percentile
19.8
Low
0 — 8.8
Typical Range
8.8 — 20.1
High
20.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 8.8
Median 13.3
70th Percentile 20.1
Max 3 188 432.5

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 28%
Intrinsic Value
Price $103.02
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