2 models fit Shake Shack Inc. Class A Common Stock and they disagree: 0 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionShake Shack Inc. Class A Common Stock (SHAK)
Fair value (2 models)
$30.17
ACCE price target
$64.00
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 15:06 CEST; previously $23.94 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 15:06 CEST.
Price used: $65.16 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
116.0% above
-53.7% to fair value
ACCE score
35
out of 100
Analysts
54% buy
28 covering
P/E
71.5x
forward 41.7x
1-year return
-28.7%
Dividend yield
0.00%
Shake Shack Inc. Class A Common Stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Shake Shack runs company-operated and licensed better-burger restaurants, with its signature ShackBurger, crinkle-cut fries and frozen custard, plus a growing licensed footprint in airports, stadiums and international markets. Its brand pull and digital ordering base give it pricing power that most fast-casual peers lack, and the licensed model adds unit growth without the full capital burden of company-owned openings. Revenue growth of 17.2% is the number to test, since the question is whether unit expansion and same-store sales can keep compounding that rate while operating margin, at 5.1%, is still thin. The stock trades at 41.7 times forward earnings against 74.3 times trailing, so the market is pricing a sharp earnings recovery, and the thesis lives or dies on whether margin expansion arrives on schedule. With a 7.9% return on equity and a score of 40/100, the quality screen is not yet supportive, so this warrants a deeper look at store-level economics and restaurant-level margin trends before any conviction is formed.