Sweetgreen vs Shake Shack
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KIRAβs take AI analyst
I put Sweetgreen and Shake Shack side by side, using each oneβs latest annual report. Here is what stands out:
- Shake Shack is the larger business, with $1.4B of revenue in fiscal 2025 against $680M for Sweetgreen, about 2.1 times as much.
- Shake Shack grew revenue faster (15.4%, against 0.4%).
- Shake Shack kept more of each dollar of sales as operating profit (4.3% operating margin, against β20.5%).
- Shake Shack turned more of its sales into free cash flow (3.9% FCF margin, against β17.5%).
- Shake Shack earned a higher return on the capital invested in it (9.6%, against β44.2%).
- Investors pay more for each dollar of Sweetgreenβs earnings: a P/E of 98.2x against 68.6x for Shake Shack.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Sweetgreen
SG
1/9
5-year growth
Shake Shack
SHAK
8/9
Revenue growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | SG FY25 | SHAK FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.2B | $2.7B |
| Revenue | $680M | $1.4B |
| Free cash flow | β$119M | $56.5M |
| Net income | β$134M | $45.7M |
| Growth | ||
| Revenue growth | 0.4% | 15.4% |
| 5-year growth | 25.2% | 22.6% |
| Share count change | 3.2% | β5.3% |
| Profitability | ||
| Gross margin | β | β |
| Operating margin | β20.5% | 4.3% |
| Net margin | β19.7% | 3.2% |
| FCF margin | β17.5% | 3.9% |
| Return on capital | β44.2% | 9.6% |
| Return on equity | β33.4% | 9.2% |
| Balance sheet | ||
| Net debt | β$89.2M | β$96.7M |
| Net debt / EBITDA | β | β0.6x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | 98.2x | 68.6x |
| Piotroski F-score | 2 | 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.