Arcos Dorados Holdings Inc. (ARCO) vs Shake Shack, Inc. (SHAK)

Arcos Dorados Holdings Inc. and Shake Shack, Inc. are both Restaurants companies. Shake Shack, Inc. is the larger, with a market value of $2.5B against $1.5B — 1.6× the size. Arcos Dorados Holdings Inc. trades at the lower P/E: 5.9× against 56.5×. Shake Shack, Inc. grew revenue faster over the last twelve months: 17.3% against 10.8%. Arcos Dorados Holdings Inc. has the higher net margin (5.15% vs 2.56%) and the higher return on invested capital (16.3% vs 6.77%). Across the 20 metrics below, Arcos Dorados Holdings Inc. leads on 13 and Shake Shack, Inc. on 7.

Valuation

Metric ARCO SHAK Restaurants median
P/E 5.93 56.53 22.14
P/S 0.31 1.44 0.91
P/B 1.83 3.92 2.01
Price to free cash flow 14.64 n/m 19.41
EV/EBITDA 3.64 12.70 11.48
EV/Sales 0.44 1.41 1.20
Earnings yield 16.85% 1.77% 2.30%
Free cash flow yield 6.83% (0.52%) 3.92%

Profitability

Metric ARCO SHAK Restaurants median
Gross margin 12.25% 25.29% 38.77%
Operating margin 7.87% 3.57% 4.30%
Net margin 5.15% 2.56% 1.85%
Free cash flow margin 2.09% (0.75%) 3.12%
Return on equity 36.30% 7.28% 3.07%
Return on assets 7.07% 2.13% 1.50%
Return on invested capital 16.31% 6.77% 3.14%

Growth

Metric ARCO SHAK Restaurants median
Revenue growth (TTM) 10.77% 17.33% 5.16%
EPS growth (last fiscal year) 42.25% 354.17% —
Revenue growth, 5-year CAGR 18.71% 22.55% 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARCO SHAK Restaurants median
Debt to equity 1.19 0.43 0.10
Current ratio 0.88 1.67 0.81
Net debt to EBITDA 1.26 (0.65) 0.43

Dividend

Metric ARCO SHAK Restaurants median
Dividend yield 1.80% — 2.32%
Payout ratio 0.22 0.00 0.00

Size

Metric ARCO SHAK Restaurants median
Market cap 1.51b 2.46b 482.66m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack