Shake Shack (SHAK)

Shake Shack, still fairly new in comparison to the big dogs like BK and McD’s. Their price is +40% this year.

In a similar price point, I’m more a Five Guys fan, but they’re private.

P/E Ratio: 113.76 :eyes:

I’d like to call that ‘potential’:sweat_smile:

- Hello, what do you do?
- We sell burgers and fries :kissing_heart:
- Alright! I love :hamburger: and :fries: and :cup_with_straw:
- Our market cap is just above USD 3 billion, we’re kind of new here!
- Nice. So much growth potential. What are your metrics like?
- Our Enterprise Value/Revenue is about 5x, according to Yahoo! Finance [that’s lower than McDonald’s 9x]
- Nice. Nice.


- …and our EV/EBITDA is at mere 42x" [in comparison, McDonald’s is about 18-19x]

Source - https://finance.yahoo.com/quote/SHAK/key-statistics?p=SHAK

S-1 - Under Risk Factors:

Source - https://www.sec.gov/Archives/edgar/data/1620533/000104746914010114/a2222577zs-1.htm?#co19801_cautionary_note_regarding_forward-looking_statements

I went to a bar and ordered a nice juicy burger.

:hamburger:

Shake Shack is competing with bars.

From Zero to One: Notes on Startups, or How to Build the Future:

Suppose you want to start a restaurant that serves British food in Palo Alto. “No one else is doing it,” you might reason. “We’ll own the entire market.” But that’s only true if the relevant market is the market for British food specifically. What if the actual market is the Palo Alto restaurant market in general? And what if all the restaurants in nearby towns are part of the relevant market as well?

These are hard questions, but the bigger problem is that you have an incentive not to ask them at all. When you hear that most new restaurants fail within one or two years, your instinct will be to come up with a story about how yours is different. You’ll spend time trying to convince people that you are exceptional instead of seriously considering whether that’s true. It would be better to pause and consider whether there are people in Palo Alto who would rather eat British food above all else. It’s very possible they don’t exist.

Source - https://genius.com/Chapter-3-5-of-zero-to-one-peter-thiel-annotated

1 Like

When are we getting that stock on Freetrade?