Shake Shack Inc.

NYSE:SHAK Stock Report

Market Cap: US$5.5b

Shake Shack Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 SHAK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHAK ($129.8) is trading above our estimate of fair value ($111.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SHAK. This is calculated by dividing SHAK's market cap by their current revenue.
What is SHAK's PS Ratio?
PS Ratio4.3x
SalesUS$1.21b
Market CapUS$5.50b

Price to Sales Ratio vs Peers

How does SHAK's PS Ratio compare to its peers?

The above table shows the PS ratio for SHAK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.4x
EAT Brinker International
1.3x4.9%US$5.9b
SG Sweetgreen
5.5x16.0%US$3.7b
WING Wingstop
14x15.9%US$8.4b
ARMK Aramark
0.6x5.8%US$9.8b
SHAK Shake Shack
4.3x12.1%US$5.5b

Price-To-Sales vs Peers: SHAK is good value based on its Price-To-Sales Ratio (4.3x) compared to the peer average (5.4x).

Price to Sales Ratio vs Industry

How does SHAK's PS Ratio compare vs other companies in the US Hospitality Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
BLMN Bloomin' Brands
0.2x-2.1%US$1.03b
BALY Bally's
0.3x2.2%US$725.90m
TAST Carrols Restaurant Group
0.3x2.9%US$478.64m
GENK GEN Restaurant Group
0.2x18.5%US$243.38m
SHAK 4.3xIndustry Avg. 1.6xNo. of Companies28PS01.22.43.64.86+
28 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SHAK is expensive based on its Price-To-Sales Ratio (4.3x) compared to the US Hospitality industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is SHAK'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.

SHAK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.3x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: SHAK is expensive based on its Price-To-Sales Ratio (4.3x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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 SHAK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$129.80
US$131.86
+1.6%
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$124.10
US$128.50
+3.5%
10.7%US$160.00US$100.00n/a22
Oct ’25US$101.73
US$112.64
+10.7%
9.2%US$130.00US$95.00n/a22
Sep ’25US$99.41
US$112.77
+13.4%
9.1%US$130.00US$95.00n/a22
Aug ’25US$102.41
US$110.77
+8.2%
10.1%US$130.00US$90.00n/a22
Jul ’25US$86.57
US$113.67
+31.3%
7.0%US$125.00US$95.00n/a21
Jun ’25US$94.89
US$113.65
+19.8%
7.3%US$125.00US$95.00n/a20
May ’25US$103.33
US$106.48
+3.0%
8.9%US$125.00US$90.00n/a21
Apr ’25US$106.45
US$104.25
-2.1%
10.2%US$125.00US$88.00n/a20
Mar ’25US$107.25
US$99.00
-7.7%
11.3%US$115.00US$65.00n/a20
Feb ’25US$78.75
US$73.95
-6.1%
11.9%US$90.00US$60.00n/a19
Jan ’25US$74.12
US$69.47
-6.3%
12.5%US$85.00US$56.00US$129.8019
Dec ’24US$61.66
US$66.67
+8.1%
13.4%US$85.00US$56.00US$133.7318
Nov ’24US$57.27
US$71.37
+24.6%
15.0%US$95.00US$56.00US$124.1019
Oct ’24US$58.07
US$77.76
+33.9%
9.2%US$95.00US$68.00US$101.7317
Sep ’24US$70.07
US$77.31
+10.3%
9.3%US$95.00US$68.00US$99.4116
Aug ’24US$77.16
US$72.56
-6.0%
11.9%US$90.00US$60.00US$102.4116
Jul ’24US$77.72
US$69.63
-10.4%
12.3%US$85.00US$59.00US$86.5716
Jun ’24US$67.54
US$67.87
+0.5%
9.7%US$82.00US$59.00US$94.8915
May ’24US$54.74
US$57.88
+5.7%
11.4%US$70.00US$48.00US$103.3316
Apr ’24US$55.49
US$58.20
+4.9%
11.3%US$70.00US$47.00US$106.4515
Mar ’24US$57.07
US$57.53
+0.8%
11.3%US$70.00US$47.00US$107.2517
Feb ’24US$57.87
US$53.76
-7.1%
10.0%US$63.00US$47.00US$78.7517
Jan ’24US$41.53
US$53.72
+29.4%
12.0%US$69.00US$45.00US$74.1218

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/31 09:43
End of Day Share Price 2024/12/31 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