Restaurant Multiple Compression

Inflation vs the High-Multiple Restaurant Basket

Short basket WING · SG · SHAK · CAVA · CMG · BROS with comp legs DPZ · YUMC · YUM · MCD. Market data live via yfinance; operating data maintained manually per earnings season (last updated 2026-06-11).

Section 1Summary Ranking


TickerCompanyArgus rankShort scoreActionKey reasonData as of
SGSweetgreen256WatchWorst fundamentals: revenue -2.9% y/y, SSS -12.8%, -21% operating margin — but crowded (~21% SI) and bombed out.2026-06-11
WINGWingstop140Wait for bounceTop priority: domestic SSS -8.7% (traffic-led), guidance cut, still ~23x EV/EBITDA.2026-06-11
MCDMcDonald's34WatchLong leg: defensive brand, value-menu flexibility, franchise mix, ~20x fwd P/E.2026-06-11
CMGChipotle Mexican Grill534WatchMargin pressure real (RLM -250bps y/y) but high quality and ~22x fwd P/E — not a priority standalone short.2026-06-11
YUMYum Brands30WatchLong leg: franchised royalty model absorbs less restaurant-level cost pressure, ~20x fwd P/E.2026-06-11
DPZDomino's Pizza29Wait for bounceLong leg: value-oriented, franchised, delivery/carryout economics at ~15x fwd P/E.2026-06-11
CAVACAVA Group428Pair candidateExpensive (~108x fwd P/E) but traffic +6.8% still strong — wait for deceleration below mid-single digits.2026-06-11
SHAKShake Shack326WatchRebound short: company-operated, 21.2% RLM, GAAP operating loss; short bounces toward $65-75.2026-06-11
BROSDutch Bros624Avoid shortAvoid: Q1 transactions +5.1%, guidance raised, ~44.5% short interest — squeeze risk.2026-06-11
YUMCYum China22WatchLong leg: scale, value formats, China recovery optionality at ~13-14x fwd P/E.2026-06-11

Section 2Valuation


TickerPriceMkt capEVEV/EBITDAFwd P/EP/SSI % float52w hi / lovs 50DMAvs 200DMA
WING$144.19$3.9B$5.1B22.7x25.8x5.5x19.5%$381.45 / $116.35-8.0%-36.7%
SG$8.71$1.0B$1.2Bn/mn/m1.5x21.2%$16.70 / $4.49+19.7%+25.0%
SHAK$54.83$2.3B$2.9B16.7x36.2x1.6x12.5%$144.65 / $51.60-31.8%-38.4%
CAVA$83.71$9.8B$9.6B64.3x110.7x7.6x13.3%$98.79 / $43.41+0.2%+21.4%
CMG$30.67$39.3B$43.4B18.8x22.6x3.2x3.9%$58.42 / $28.04-6.4%-15.1%
BROS$62.25$10.9B$9.4B31.3x49.9x6.2x44.5%$74.65 / $44.58+14.2%+10.3%
DPZ$309.75$10.3B$15.4B15.0x14.8x2.1x12.1%$496.00 / $297.48-7.9%-21.4%
YUMC$43.80$15.2B$16.8B9.2x13.5x1.3x1.2%$58.39 / $41.69-6.4%-8.1%
YUM$152.46$42.0B$54.1B18.1x20.3x5.0x3.0%$169.39 / $137.33-1.6%-0.3%
MCD$282.36$200.6B$254.5B17.1x19.9x7.3x1.5%$341.75 / $271.85-2.6%-7.8%

Section 3Operating Metrics


TickerLatest qtrRev y/yRev q/qCompsTrafficTicketRLMOp marginNet new storesGuidanceCommentary
WINGQ1 2026+7.4%+4.6%-8.7%25.1%27.4%97CutQ1 domestic SSS -8.7% (traffic-led, after -5.8% in Q4 2025); management blames lower transaction volumes, inflation, gas prices, pressured lower-income consumer. System-wide sales +5.9% and adj EBITDA +9.9% mask the domestic comp crack.
SGQ1 2026-2.9%+4.1%-12.8%-11.2%-1.6%10.0%-21.3%4MaintainedQ1 revenue -2.9% to $161.5M, SSS -12.8% (traffic -11.2%), RLM 10.0% vs 17.9% year-ago, operating margin -21.3%. GAAP EPS +$1.05 is a one-time Spyce divestiture gain — strip it and the quarter lost ~$0.29/share. Worst fundamentals in basket but already bombed out.
SHAKQ1 2026+14.3%-8.4%+4.6%+1.4%+3.2%21.2%-0.7%17RaisedQ1 revenue +14.3%, Same-Shack sales +4.6% (traffic +1.4%, price/mix +3.2%), but 21.2% RLM and a $2.6M operating loss — brand growth not converting to GAAP earnings. April SSS tracking -0.6% post-quarter. Near 52-week lows; prefer shorting rebounds, not chasing.
CAVAQ1 2026+32.1%+9.7%+6.8%+2.9%25.1%5.8%20RaisedStrong Q1: revenue +32.1%, SRS +9.7% (traffic +6.8% vs -1.4% in Q4), RLM 25.1%, guidance raised. Q4 traffic was briefly negative before the Q1 reacceleration. Bear case is valuation only, not execution. Short trigger: traffic below mid-single digits or RLM below 24%.
CMGQ1 2026+7.4%+2.9%+0.5%+0.6%-0.1%23.7%12.9%49MaintainedQ1 comps recovered to +0.5% (transactions +0.6% vs -3.2% in Q4 2025 — a traffic inflection) but ticket slipped to -0.1%; adj RLM -250bps y/y to 23.7% on beef/freight/labor, operating margin 12.9% vs 16.7%. Real margin pressure, but quality too high to prioritize.
BROSQ1 2026+31.0%+4.7%+8.3%+5.1%+3.2%28.3%7.4%41RaisedQ1 system same-shop sales +8.3%, transactions +5.1% (company-operated stronger), revenue +31%, guidance raised. Clean execution + extreme short interest = squeeze risk. Short trigger: transaction growth decelerating to low-single digits.
DPZQ1 2026+3.5%+0.9%20.0%180CutUS SSS decelerated to +0.9% (vs +3.7% in Q4) as low-income consumers pulled back on delivery; carryout +2.4% outpaced delivery -0.3%. Operating margin still expanded 110bps y/y to 20.0% on supply-chain leverage; management expects ~450 rival store closures to drive H2 share gains. Franchised model intact — comp cut is demand, not economics.
YUMCQ1 2026+9.7%+15.9%+0.0%+2.0%-2.0%18.2%13.7%636MaintainedRecord 636 net new stores with flat comps (traffic +2%, ticket -2%) — value-led, traffic-first strategy in a soft China consumer. Restaurant margin -40bps y/y to 18.2% but operating margin expanded. Growth is units + volume, not pricing.
YUMQ1 2026+15.2%-18.0%+3.0%31.3%MaintainedTaco Bell carried the quarter (+8% comps, +16% op profit); KFC +2% comps on international units; Pizza Hut flat comps and -14% op profit, under strategic review with ~250 closures planned. Royalty model converting cleanly — core op profit ex-Pizza Hut +10%.
MCDQ1 2026+9.4%-7.0%+3.8%45.3%484MaintainedStrongest revenue growth in eight quarters: global comps +3.8% (US +3.9%) on value platforms and loyalty, reversing -1.0% a year ago. Caveat: CEO flagged consumer "may be getting a little bit worse" and April comps turned slightly negative in US and IOM.

Section 4Sequential Performance


TickerRevenue (Q / Q-1 / Q-4)EPS (Q / Q-1 / Q-4)RLM (Q vs prior)Comps (Q vs prior)Traffic (Q vs prior)
WING$184M / $176M / $171M$1.18 / $1.00 / $0.9925.1% vs 24.4%-8.7% vs -5.8%— vs —
SG$162M / $155M / $166M$1.05 / $-0.42 / $-0.2310.0% vs 10.4%-12.8% vs -11.5%-11.2% vs -13.3%
SHAK$367M / $400M / $321M$-0.01 / $0.28 / $0.1021.2% vs 22.7%+4.6% vs +2.1%+1.4% vs +0.5%
CAVA$438M / $275M / $332M$0.20 / $0.04 / $0.2225.1% vs 21.4%+9.7% vs +0.5%+6.8% vs -1.4%
CMG$3,088M / $3,000M / $2,875M$0.24 / $0.25 / $0.2923.7% vs 23.4%+0.5% vs -2.5%+0.6% vs -3.2%
BROS$464M / $444M / $355M$0.16 / $0.17 / $0.1428.3% vs 27.6%+8.3% vs +7.7%+5.1% vs +5.4%
DPZ$1,151M / $1,536M / $1,112M$4.13 / $5.35 / $4.33— vs — (y/y)+0.9% vs +3.7%— vs —
YUMC$3,271M / $2,823M / $2,981M$0.87 / $0.40 / $0.7718.2% vs 13.0%+0.0% vs +3.0%+2.0% vs +4.0%
YUM$2,059M / $2,510M / $1,787M$1.50 / $1.73 / $1.30— vs — (y/y)+3.0% vs +3.0%— vs —
MCD$6,517M / $7,009M / $5,956M$2.83 / $3.12 / $2.67— vs — (y/y)+3.8% vs +5.7%— vs —

Section 5Timing Signals


TickerSignalRule firedValuationOperating det.Margin det.TechnicalCrowding
SGWatchMixed signals — no entry rule fired.0.720.750.431.00-0.65
WINGWait for bounceFundamentals weak but price -37% vs 200DMA — deeply oversold, short the rebound.0.660.780.030.12-0.58
MCDWatchMixed signals — no entry rule fired.0.510.450.070.45-0.00
CMGWatchMixed signals — no entry rule fired.0.520.400.190.31-0.00
YUMWatchMixed signals — no entry rule fired.0.480.370.000.55-0.00
DPZWait for bounceFundamentals weak but price -21% vs 200DMA — deeply oversold, short the rebound.0.230.680.030.21-0.28
CAVAPair candidateValuation extreme but fundamentals still strong — pair vs cheaper leg, wait for deceleration.0.950.000.000.75-0.33
SHAKWatchMixed signals — no entry rule fired.0.420.210.580.00-0.30
BROSAvoid shortShort interest extreme (44% of float) — squeeze risk.0.810.070.110.94-1.00
YUMCWatchMixed signals — no entry rule fired.0.050.490.000.39-0.00