Sweetgreen, Inc. (SG) vs Shake Shack, Inc. (SHAK)

Sweetgreen, Inc. and Shake Shack, Inc. are both Restaurants companies. Shake Shack, Inc. is the larger, with a market value of $3.0B against $1.4B — 2.2× the size. Shake Shack, Inc. trades at the lower P/E: 64.4× against 105×. Shake Shack, Inc. grew revenue faster over the last twelve months: 17.1% against −0.65%. Shake Shack, Inc. has the higher net margin (2.72% vs 2.01%) and the higher return on invested capital (6.95% vs −28.1%). Across the 19 metrics below, Shake Shack, Inc. leads on 15 and Sweetgreen, Inc. on 4.

Valuation

Metric SG SHAK Restaurants median
P/E 105.45 64.36 26.18
P/S 2.02 1.75 1.11
P/B 2.95 4.73 2.06
Price to free cash flow n/m n/m 17.92
EV/EBITDA n/m 15.97 12.81
EV/Sales 1.81 1.71 1.29
Earnings yield 0.95% 1.55% 2.23%
Free cash flow yield (8.97%) (0.80%) 3.23%

Profitability

Metric SG SHAK Restaurants median
Gross margin 11.75% 0.00% 38.86%
Operating margin (21.43%) 3.63% 4.59%
Net margin 2.01% 2.72% 1.83%
Free cash flow margin (18.14%) (1.39%) 2.47%
Return on equity 3.07% 7.74% 3.72%
Return on assets 1.58% 2.29% 1.10%
Return on invested capital (28.10%) 6.95% 3.01%

Growth

Metric SG SHAK Restaurants median
Revenue growth (TTM) (0.65%) 17.09% 5.52%
EPS growth (last fiscal year) (44.30%) 354.17% (5.05%)
Revenue growth, 5-year CAGR 25.23% 22.55% 10.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SG SHAK Restaurants median
Debt to equity 0.00 0.42 0.22
Current ratio 1.43 1.72 0.78
Net debt to EBITDA 1.34 (0.65) 0.43

Dividend

Metric SG SHAK Restaurants median
Dividend yield — — 1.79%
Payout ratio — — 0.45

Size

Metric SG SHAK Restaurants median
Market cap 1.37b 2.99b 612.23m

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