Shake Shack vs Wingstop
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KIRA’s take AI analyst
I put Shake Shack and Wingstop side by side, using each one’s latest annual report. Here is what stands out:
- Shake Shack is the larger business, with $1.4B of revenue in fiscal 2025 against $697M for Wingstop, about 2.1 times as much.
- Shake Shack grew revenue faster (15.4%, against 11.4%).
- Wingstop kept more of each dollar of sales as operating profit (25.7% operating margin, against 4.3%).
- Wingstop turned more of its sales into free cash flow (15.2% FCF margin, against 3.9%).
- Wingstop earned a higher return on the capital invested in it (51.0%, against 9.6%).
- Investors pay more for each dollar of Shake Shack’s earnings: a P/E of 68.6x against 28.3x for Wingstop.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Shake Shack
SHAK
4/9
Revenue growthPiotroski F-scoreNet debt / EBITDAShare count change
Wingstop
WING
5/9
5-year growthOperating marginNet marginFCF marginReturn on capital
Side by side
Best in the row
| Latest fiscal year | SHAK FY25 | WING FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.7B | $3.3B |
| Revenue | $1.4B | $697M |
| Free cash flow | $56.5M | $106M |
| Net income | $45.7M | $174M |
| Growth | ||
| Revenue growth | 15.4% | 11.4% |
| 5-year growth | 22.6% | 22.9% |
| Share count change | −5.3% | −4.5% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 4.3% | 25.7% |
| Net margin | 3.2% | 25.0% |
| FCF margin | 3.9% | 15.2% |
| Return on capital | 9.6% | 51.0% |
| Return on equity | 9.2% | — |
| Balance sheet | ||
| Net debt | −$96.7M | $1.0B |
| Net debt / EBITDA | −0.6x | 5.0x |
| Dividends and buybacks | $0.0M | $254M |
| Valuation & quality | ||
| P/E | 68.6x | 28.3x |
| Piotroski F-score | 7 | 4 |
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.