SHAK vs TXRH

For growth investors, Texas Roadhouse, Inc.

(TXRH) is the stronger pick with 16. 0% revenue growth year-over-year, versus 15. 4% for Shake Shack Inc. (SHAK). Texas Roadhouse, Inc. (TXRH) offers the better valuation at 24. 7x trailing P/E (25. 3x forward), making it the more compelling value choice. Analysts rate Shake Shack Inc. (SHAK) a "Hold" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Texas Roadhouse, Inc.

(TXRH) is the cheapest at 24. 7x versus Shake Shack Inc. at 88. 6x. On forward P/E, Texas Roadhouse, Inc. is actually cheaper at 25. 3x.

Over the past 5 years, Texas Roadhouse, Inc.

(TXRH) delivered a total return of +65. 3%, compared to -8. 6% for Shake Shack Inc. (SHAK). Over 10 years, the gap is even starker: TXRH returned +302. 2% versus SHAK's +181. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Texas Roadhouse, Inc.

(TXRH) is the lower-risk stock at 0. 70β versus Shake Shack Inc. 's 1. 75β — meaning SHAK is approximately 151% more volatile than TXRH relative to the S&P 500. On balance sheet safety, Texas Roadhouse, Inc. (TXRH) carries a lower debt/equity ratio of 62% versus 163% for Shake Shack Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Texas Roadhouse, Inc.

(TXRH) is pulling ahead at 16. 0% versus 15. 4% for Shake Shack Inc. (SHAK). On earnings-per-share growth, the picture is similar: Shake Shack Inc. grew EPS 354. 2% year-over-year, compared to 42. 5% for Texas Roadhouse, Inc.. Over a 3-year CAGR, SHAK leads at 17. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Texas Roadhouse, Inc.

(TXRH) is the more profitable company, earning 8. 1% net margin versus 3. 2% for Shake Shack Inc. — meaning it keeps 8. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TXRH leads at 9. 6% versus 5. 9% for SHAK. At the gross margin level — before operating expenses — SHAK leads at 18. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Texas Roadhouse, Inc.

(TXRH) trades at 25. 3x forward P/E versus 70. 0x for Shake Shack Inc. — 44. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHAK: 25. 2% to $120. 89.

In this comparison, TXRH (1.

5% yield) pays a dividend. SHAK does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Roadhouse, Inc.

(TXRH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 70), 1. 5% yield, +302. 2% 10Y return). Shake Shack Inc. (SHAK) carries a higher beta of 1. 75 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXRH: +302. 2%, SHAK: +181. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

TXRH pays a dividend while SHAK does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.