Biglari Holdings Inc. (BH) vs Shake Shack, Inc. (SHAK)

Biglari Holdings Inc. and Shake Shack, Inc. are both Restaurants companies. Shake Shack, Inc. is the larger, with a market value of $2.5B against $1.1B — 2.2× the size. Biglari Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Shake Shack, Inc. trades at 56.5×. Shake Shack, Inc. grew revenue faster over the last twelve months: 17.3% against 7.54%. Shake Shack, Inc. has the higher net margin (2.56% vs −7.33%) and the higher return on invested capital (6.77% vs 0.87%). Across the 19 metrics below, Shake Shack, Inc. leads on 10 and Biglari Holdings Inc. on 9.

Valuation

Metric BH SHAK Restaurants median
P/E n/m 56.53 22.14
P/S 0.21 1.44 0.91
P/B 0.16 3.92 2.01
Price to free cash flow 1.34 n/m 19.41
EV/EBITDA 1.35 12.70 11.48
EV/Sales 0.24 1.41 1.20
Earnings yield (31.68%) 1.77% 2.30%
Free cash flow yield 74.64% (0.52%) 3.92%

Profitability

Metric BH SHAK Restaurants median
Gross margin 39.13% 25.29% 38.77%
Operating margin 7.52% 3.57% 4.30%
Net margin (7.33%) 2.56% 1.85%
Free cash flow margin 16.01% (0.75%) 3.12%
Return on equity (5.25%) 7.28% 3.07%
Return on assets (3.10%) 2.13% 1.50%
Return on invested capital 0.87% 6.77% 3.14%

Growth

Metric BH SHAK Restaurants median
Revenue growth (TTM) 7.54% 17.33% 5.16%
EPS growth (last fiscal year) (969.59%) 354.17% —
Revenue growth, 5-year CAGR (1.84%) 22.55% 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BH SHAK Restaurants median
Debt to equity 0.58 0.43 0.10
Current ratio 2.45 1.67 0.81
Net debt to EBITDA (0.36) (0.65) 0.43

Dividend

Metric BH SHAK Restaurants median
Dividend yield — — 2.32%
Payout ratio 0.00 0.00 0.00

Size

Metric BH SHAK Restaurants median
Market cap 1.11b 2.46b 482.66m

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