Dutch Bros vs Shake Shack
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KIRAβs take AI analyst
I put Dutch Bros and Shake Shack side by side, using each oneβs latest annual report. Here is what stands out:
- Dutch Bros is the larger business, with $1.6B of revenue in fiscal 2025 against $1.4B for Shake Shack.
- Dutch Bros grew revenue faster (27.9%, against 15.4%).
- Dutch Bros kept more of each dollar of sales as operating profit (9.8% operating margin, against 4.3%).
- Shake Shack turned more of its sales into free cash flow (3.9% FCF margin, against 3.3%).
- Dutch Bros earned a higher return on the capital invested in it (11.9%, against 9.6%).
- Investors pay more for each dollar of Shake Shackβs earnings: a P/E of 68.6x against 57.6x for Dutch Bros.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Dutch Bros
BROS
6/10
Revenue growth5-year growthOperating marginNet marginReturn on capitalReturn on equity
Shake Shack
SHAK
4/10
FCF marginPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | BROS FY25 | SHAK FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.6B | $2.7B |
| Revenue | $1.6B | $1.4B |
| Free cash flow | $54.4M | $56.5M |
| Net income | $79.8M | $45.7M |
| Growth | ||
| Revenue growth | 27.9% | 15.4% |
| 5-year growth | 38.0% | 22.6% |
| Share count change | 20.8% | β5.3% |
| Profitability | ||
| Gross margin | 25.9% | β |
| Operating margin | 9.8% | 4.3% |
| Net margin | 4.9% | 3.2% |
| FCF margin | 3.3% | 3.9% |
| Return on capital | 11.9% | 9.6% |
| Return on equity | 13.1% | 9.2% |
| Balance sheet | ||
| Net debt | $353M | β$96.7M |
| Net debt / EBITDA | 1.3x | β0.6x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | 57.6x | 68.6x |
| Piotroski F-score | 5 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.