Shake Shack Inc
NYSE:SHAK
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (113.9), the stock would be worth $185.07 (80% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 63.4 | $103.02 |
0%
|
| 3-Year Average | 113.9 | $185.07 |
+80%
|
| 5-Year Average | 49.6 | $80.65 |
-22%
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| Industry Average | 18.1 | $29.37 |
-71%
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| Country Average | 19.6 | $31.89 |
-69%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
$3.8B
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/ |
Jan 2026
$67.8m
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= |
|
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$3.8B
|
/ |
Dec 2026
$72.5m
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= |
|
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$3.8B
|
/ |
Dec 2027
$95.6m
|
= |
|
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$3.8B
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/ |
Dec 2028
$124.5m
|
= |
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$3.8B
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/ |
Dec 2029
$159.7m
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= |
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$3.8B
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/ |
Dec 2030
$189.8m
|
= |
|
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$3.8B
|
/ |
Dec 2031
$192.9m
|
= |
|
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$3.8B
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/ |
Dec 2032
$219.3m
|
= |
|
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$3.8B
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/ |
Dec 2033
$248.5m
|
= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Shake Shack Inc
NYSE:SHAK
|
4.4B USD | 63.4 | 96.2 | |
| US |
|
McDonald's Corp
NYSE:MCD
|
213.2B USD | 20.3 | 24.9 | |
| US |
|
Starbucks Corp
NASDAQ:SBUX
|
112.4B USD | 35 | 82.1 | |
| UK |
|
Compass Group PLC
LSE:CPG
|
47.7B GBP | 17.1 | 0.3 | |
| US |
|
Yum! Brands Inc
NYSE:YUM
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44.4B USD | 20.8 | 28.5 | |
| US |
|
Chipotle Mexican Grill Inc
NYSE:CMG
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44.6B USD | 22.2 | 29.1 | |
| CA |
|
Restaurant Brands International Inc
NYSE:QSR
|
28B USD | 16.2 | 36.1 | |
| IN |
|
Eternal Ltd
NSE:ETERNAL
|
2.4T INR | -362 | 1 002.3 | |
| US |
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Darden Restaurants Inc
NYSE:DRI
|
23.1B USD | 18.2 | 20.9 | |
| CN |
|
Yum China Holdings Inc
NYSE:YUMC
|
17.3B USD | 12 | 18.6 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Shake Shack Inc
Glance View
Shake Shack Inc. began as a humble hot dog cart in Madison Square Park, New York City, back in 2001, part of a public art installation by restaurateur Danny Meyer’s Union Square Hospitality Group. Fast forward to the present day, and Shake Shack has blossomed into a globally recognized fast-casual restaurant chain known for its high-quality burgers, crinkle-cut fries, and indulgent milkshakes. The company operates primarily on a straightforward yet effective business model: deliver premium-quality fast food in a friendly, vibrant environment, thereby attracting a broad demographic willing to pay a small premium compared to other fast-food alternatives. This premium positioning is critical to its strategy, allowing for higher revenue per transaction and fostering brand loyalty. Shake Shack's success largely hinges on its strategic use of innovative sourcing and brand alignment. By emphasizing fresh, simple, high-quality ingredients—like 100% all-natural Angus beef and hormone-free dairy—the chain differentiates itself from traditional fast-food players. In addition to its food offerings, Shake Shack smartly capitalizes on its strong brand image and customer experience to engage loyal fans through exclusive offers, collaborations, and seasonal menu items that generate buzz and repeat visits. Expansion remains a crucial growth pillar, with efforts to broaden its footprint both domestically and internationally, carefully balancing new outlet openings with operational efficiency to harness economies of scale. This savvy mix of upscale fast-casual dining, brand magnetism, and calculated growth has become the winning formula that fuels Shake Shack's sustained momentum in the ever-competitive restaurant landscape.
