WallStSmart

Chipotle Mexican Grill Inc (CMG)vsShake Shack Inc (SHAK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Chipotle Mexican Grill Inc generates 714% more annual revenue ($12.14B vs $1.49B). CMG leads profitability with a 12.0% profit margin vs 2.8%. CMG appears more attractively valued with a PEG of 1.85. CMG earns a higher WallStSmart Score of 54/100 (C-).

CMG

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 7.5Value: 4.3Quality: 4.5
Piotroski: 4/9Altman Z: 2.47

SHAK

Buy

51

out of 100

Grade: C-

Growth: 7.3Profit: 3.5Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CMG.

SHAKUndervalued (+28.1%)

Margin of Safety

+28.1%

Fair Value

$135.04

Current Price

$63.05

$71.99 discount

UndervaluedFair: $135.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
60.3%10/10

Every $100 of equity generates 60 in profit

SHAK1 strengths · Avg: 8.0/10
EPS GrowthGrowth
28.7%8/10

Earnings expanding 28.7% YoY

Areas to Watch

CMG4 concerns · Avg: 3.5/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

P/E RatioValuation
31.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
18.3x4/10

Trading at 18.3x book value

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

SHAK4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Debt/EquityHealth
1.783/10

Elevated debt levels

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

Bull Case : SHAK

The strongest argument for SHAK centers on EPS Growth. Revenue growth of 14.3% demonstrates continued momentum.

Bear Case : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.46 is elevated, increasing financial risk.

Bear Case : SHAK

The primary concerns for SHAK are Return on Equity, Profit Margin, Debt/Equity. A P/E of 58.1x leaves little room for execution misses. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Key Dynamics to Monitor

SHAK carries more volatility with a beta of 1.63 — expect wider price swings.

SHAK is growing revenue faster at 14.3% — sustainability is the question.

CMG generates stronger free cash flow (463M), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CMG scores higher overall (54/100 vs 51/100). SHAK offers better value entry with a 28.1% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

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Shake Shack Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Shake Shack Inc. owns, operates and licenses Shake Shack restaurants (Shacks) in the United States and internationally. The company is headquartered in New York, New York.

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