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Shake Shack and Chipotle: How Do Valuation Multiples Look?

Rajiv Nanjapla
Shake Shack and Chipotle: How Do Valuation Multiples Look?

Shake Shack (SHAK) has been trading at a higher valuation multiple than Chipotle Mexican Grill (CMG). SHAK is still in the growth phase and has a considerable scope to expand, which has been valued highly by the market. The scope for expansion and its higher average unit volume have allowed SHAK to trade at a higher valuation multiple.