Shake Shack Inc
NYSE:SHAK

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Shake Shack Inc
NYSE:SHAK
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Price: 100.61 USD 0.46% Market Closed
Market Cap: $4.3B

EV/FCFF

74.2
Current
16%
More Expensive
vs 3-y average of 63.9

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
74.2
=
Enterprise Value
$3.8B
/
Free Cash Flow to Firm
$56.5m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
74.2
=
Enterprise Value
$3.8B
/
Free Cash Flow to Firm
$56.5m

Valuation Scenarios

Shake Shack Inc is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (63.9), the stock would be worth $86.65 (14% downside from current price).

Statistics
Positive Scenarios
0/3
Maximum Downside
-69%
Maximum Upside
No Upside Scenarios
Average Downside
47%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 74.2 $100.61
0%
3-Year Average 63.9 $86.65
-14%
Industry Average 30.5 $41.41
-59%
Country Average 23.2 $31.49
-69%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Shake Shack Inc
NYSE:SHAK
4.3B USD 74.2 93.9
US
McDonald's Corp
NYSE:MCD
206.6B USD 34.1 24.1
US
Starbucks Corp
NASDAQ:SBUX
120.2B USD 65.9 87.8
UK
Compass Group PLC
LSE:CPG
45.2B GBP 25.4 0.3
US
Yum! Brands Inc
NYSE:YUM
44.3B USD 33.7 28.4
US
Chipotle Mexican Grill Inc
NYSE:CMG
43B USD 29 28
CA
Restaurant Brands International Inc
NYSE:QSR
27.3B USD 30.4 35.1
IN
Eternal Ltd
NSE:ETERNAL
2.3T INR -151.7 972.1
US
Darden Restaurants Inc
NYSE:DRI
22.5B USD 26.4 20.4
JP
Friendly Corp
TSE:8209
2.9T JPY -28.7 -6.5

Market Distribution

Higher than 90% of companies in the United States of America
Percentile
90th
Based on 8 393 companies
90th percentile
74.2
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

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 26%
Intrinsic Value
Price $100.61
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