Shake Shack Inc.

LSE:0L5R Stock Report

Market Cap: US$5.5b

Shake Shack Valuation

Is 0L5R undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0L5R when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0L5R ($128.22) is trading above our estimate of fair value ($112.39)

Significantly Below Fair Value: 0L5R is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0L5R?

Key metric: As 0L5R is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0L5R. This is calculated by dividing 0L5R's market cap by their current revenue.
What is 0L5R's PS Ratio?
PS Ratio4.3x
SalesUS$1.21b
Market CapUS$5.47b

Price to Sales Ratio vs Peers

How does 0L5R's PS Ratio compare to its peers?

The above table shows the PS ratio for 0L5R vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
GRG Greggs
1.4x9.3%UK£2.8b
ROO Deliveroo
1x8.6%UK£2.1b
MAB Mitchells & Butlers
0.6x3.4%UK£1.5b
DOM Domino's Pizza Group
1.8x6.1%UK£1.2b
0L5R Shake Shack
4.3x12.4%US$5.5b

Price-To-Sales vs Peers: 0L5R is expensive based on its Price-To-Sales Ratio (4.3x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does 0L5R's PS Ratio compare vs other companies in the GB Hospitality Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
TRC Revel Collective
0.05x-3.1%US$8.91m
NGHT Nightcap
0.1xn/aUS$8.62m
COM Comptoir Group
0.1xn/aUS$4.99m
TAST Tasty
0.04x-15.3%US$2.35m
0L5R 4.3xIndustry Avg. 1.0xNo. of Companies7PS00.61.21.82.43+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0L5R is expensive based on its Price-To-Sales Ratio (4.3x) compared to the UK Hospitality industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is 0L5R's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0L5R PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.3x
Fair PS Ratio2.3x

Price-To-Sales vs Fair Ratio: 0L5R is expensive based on its Price-To-Sales Ratio (4.3x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0L5R forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$128.22
US$131.86
+2.8%
9.6%US$160.00US$102.00n/a22
Dec ’25US$133.73
US$131.14
-1.9%
9.8%US$160.00US$102.00n/a22
Nov ’25US$124.08
US$128.50
+3.6%
10.7%US$160.00US$100.00n/a22
Oct ’25US$102.60
US$112.64
+9.8%
9.2%US$130.00US$95.00n/a22
Sep ’25US$99.31
US$112.77
+13.6%
9.1%US$130.00US$95.00n/a22
Aug ’25US$102.53
US$110.77
+8.0%
10.1%US$130.00US$90.00n/a22
Jul ’25US$87.05
US$113.67
+30.6%
7.0%US$125.00US$95.00n/a21
Jun ’25US$92.20
US$113.65
+23.3%
7.3%US$125.00US$95.00n/a20
May ’25US$103.71
US$106.48
+2.7%
8.9%US$125.00US$90.00n/a21
Apr ’25US$104.98
US$104.25
-0.7%
10.2%US$125.00US$88.00n/a20
Mar ’25US$106.30
US$99.00
-6.9%
11.3%US$115.00US$65.00n/a20
Feb ’25US$78.16
US$73.95
-5.4%
11.9%US$90.00US$60.00n/a19
Jan ’25US$74.66
US$69.47
-6.9%
12.5%US$85.00US$56.00n/a19
Dec ’24US$61.28
US$66.67
+8.8%
13.4%US$85.00US$56.00US$133.7318
Nov ’24US$56.15
US$71.37
+27.1%
15.0%US$95.00US$56.00US$124.0819
Oct ’24US$56.59
US$77.76
+37.4%
9.2%US$95.00US$68.00US$102.6017
Sep ’24US$70.36
US$77.31
+9.9%
9.3%US$95.00US$68.00US$99.3116
Aug ’24US$77.34
US$72.56
-6.2%
11.9%US$90.00US$60.00US$102.5316
Jul ’24US$77.63
US$69.63
-10.3%
12.3%US$85.00US$59.00US$87.0516
Jun ’24US$67.48
US$67.87
+0.6%
9.7%US$82.00US$59.00US$92.2015
May ’24US$53.60
US$57.88
+8.0%
11.4%US$70.00US$48.00US$103.7116
Apr ’24US$56.24
US$58.20
+3.5%
11.3%US$70.00US$47.00US$104.9815
Mar ’24US$55.72
US$57.53
+3.2%
11.3%US$70.00US$47.00US$106.3017
Feb ’24US$55.53
US$53.76
-3.2%
10.0%US$63.00US$47.00US$78.1617
Jan ’24US$43.71
US$53.72
+22.9%
12.0%US$69.00US$45.00US$74.6618
Dec ’23US$52.91
US$54.26
+2.6%
11.5%US$69.00US$45.00US$61.2819

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 23:54
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/25
Annual Earnings2023/12/27

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Shake Shack Inc. is covered by 32 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David TarantinoBaird
Ishan MajumdarBaptista Research
Jeffrey BernsteinBarclays