Shake Shack vs Sonos
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KIRAβs take AI analyst
I put Shake Shack and Sonos 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 $1.4B for Sonos.
- Shake Shack grew revenue faster (15.4%, against β4.9%).
- Shake Shack kept more of each dollar of sales as operating profit (4.3% operating margin, against β3.5%).
- Sonos turned more of its sales into free cash flow (7.5% FCF margin, against 3.9%).
- Shake Shack earned a higher return on the capital invested in it (9.6%, against β23.8%).
- Investors pay more for each dollar of Shake Shackβs earnings: a P/E of 68.6x against 39.9x for Sonos.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Shake Shack
SHAK
8/10
Revenue growth5-year growthOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Sonos
SONO
2/10
FCF marginNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | SHAK FY25 | SONO FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.7B | $2.1B |
| Revenue | $1.4B | $1.4B |
| Free cash flow | $56.5M | $108M |
| Net income | $45.7M | β$61.1M |
| Growth | ||
| Revenue growth | 15.4% | β4.9% |
| 5-year growth | 22.6% | 1.7% |
| Share count change | β5.3% | β2.0% |
| Profitability | ||
| Gross margin | β | 43.7% |
| Operating margin | 4.3% | β3.5% |
| Net margin | 3.2% | β4.2% |
| FCF margin | 3.9% | 7.5% |
| Return on capital | 9.6% | β23.8% |
| Return on equity | 9.2% | β15.6% |
| Balance sheet | ||
| Net debt | β$96.7M | β$228M |
| Net debt / EBITDA | β0.6x | β19.2x |
| Dividends and buybacks | $0.0M | $81.0M |
| Valuation & quality | ||
| P/E | 68.6x | 39.9x |
| 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.