Shake Shack, Inc. (SHAK) vs The Wendy's Company (WEN)

Shake Shack, Inc. and The Wendy's Company are both Restaurants companies. Shake Shack, Inc. is the larger, with a market value of $2.5B against $1.2B — 2.0× the size. The Wendy's Company trades at the lower P/E: 9.9× against 56.5×. Shake Shack, Inc. grew revenue faster over the last twelve months: 17.3% against −0.98%. The Wendy's Company has the higher net margin (5.72% vs 2.56%) and the lower return on invested capital (5.98% vs 6.77%). Across the 21 metrics below, The Wendy's Company leads on 13 and Shake Shack, Inc. on 8.

Valuation

Metric SHAK WEN Restaurants median
P/E 56.53 9.92 22.14
P/S 1.44 0.57 0.91
P/B 3.92 10.35 2.01
Price to free cash flow n/m 5.39 19.41
EV/EBITDA 12.70 8.93 11.48
EV/Sales 1.41 1.93 1.20
Earnings yield 1.77% 10.08% 2.30%
Free cash flow yield (0.52%) 18.54% 3.92%

Profitability

Metric SHAK WEN Restaurants median
Gross margin 25.29% 58.83% 38.77%
Operating margin 3.57% 13.63% 4.30%
Net margin 2.56% 5.72% 1.85%
Free cash flow margin (0.75%) 10.50% 3.12%
Return on equity 7.28% 108.04% 3.07%
Return on assets 2.13% 2.58% 1.50%
Return on invested capital 6.77% 5.98% 3.14%

Growth

Metric SHAK WEN Restaurants median
Revenue growth (TTM) 17.33% (0.98%) 5.16%
EPS growth (last fiscal year) 354.17% (10.53%) —
Revenue growth, 5-year CAGR 22.55% 4.66% 10.57%
Net income growth, 5-year CAGR 0.00% 6.98% 0.00%

Health

Metric SHAK WEN Restaurants median
Debt to equity 0.43 28.20 0.10
Current ratio 1.67 1.90 0.81
Net debt to EBITDA (0.65) 5.96 0.43

Dividend

Metric SHAK WEN Restaurants median
Dividend yield — 5.24% 2.32%
Payout ratio 0.00 0.84 0.00

Size

Metric SHAK WEN Restaurants median
Market cap 2.46b 1.24b 482.66m

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