Shake Shack Inc (SHAK)vsYum! Brands Inc (YUM)
SHAK
Shake Shack Inc
$63.51
-0.23%
CONSUMER CYCLICAL · Cap: $2.70B
YUM
Yum! Brands Inc
$140.87
-2.10%
CONSUMER CYCLICAL · Cap: $40.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 462% more annual revenue ($8.72B vs $1.55B). YUM leads profitability with a 25.4% profit margin vs 2.6%. YUM appears more attractively valued with a PEG of 1.90. YUM earns a higher WallStSmart Score of 65/100 (C+).
SHAK
Hold42
out of 100
Grade: D
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.1%
Fair Value
$138.90
Current Price
$63.51
$75.40 discount
Margin of Safety
-78.4%
Fair Value
$89.16
Current Price
$140.87
$51.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
17.2% revenue growth
Strong operational efficiency at 32.8%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Areas to Watch
ROE of 7.8% — below average capital efficiency
2.6% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : SHAK
The strongest argument for SHAK centers on Revenue Growth. Revenue growth of 17.2% demonstrates continued momentum.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : SHAK
The primary concerns for SHAK are Return on Equity, Profit Margin, PEG Ratio. A P/E of 70.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
SHAK profiles as a growth stock while YUM is a mature play — different risk/reward profiles.
SHAK carries more volatility with a beta of 1.66 — expect wider price swings.
SHAK is growing revenue faster at 17.2% — sustainability is the question.
YUM generates stronger free cash flow (407M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 42/100), backed by strong 25.4% margins and 12.2% revenue growth. SHAK offers better value entry with a 30.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Shake Shack Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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