Graduation Year
2024
Graduation Month
December
Document Type
Thesis - Campus Access Only
Degree Name
Bachelor of Science
School or Department
Business School
Major
Finance
Faculty Mentor Department
Business School
Faculty Mentor
Robert Sonora
Subject Categories
Business
Abstract
This report evaluates the impact of the COVID-19 pandemic on the capital structure and market sensitivity of Shake Shack and its key competitors in the fast-food industry. Using pre- and post-pandemic data, this research analyzes the changes in beta and weighted average cost of capital (WACC) for Shake Shack, Chipotle, McDonald's, Red Robin, and Wendy’s. The results indicate a general increase in market volatility (beta) for all companies, with Red Robin and Shake Shack showing the most significant changes in sensitivity. While most of the firms experienced an increase in their WACC which signals higher financing costs, Chipotle saw a slight decrease, indicating resilience in its capital structure. These results highlight the significant financial challenges faced by the industry and depict the need for strategic adjustments in response to the post-pandemic economic environment.
Honors College Research Project
1
GLI Capstone Project
no
Recommended Citation
Thompson, Skyleigh Aspen, "Capital Structure: A Comparative Analysis of Shake Shack and Its Competitors Pre- and Post-COVID-19 Pandemic" (2024). Undergraduate Theses, Professional Papers, and Capstone Artifacts. 529.
https://scholarworks.umt.edu/utpp/529
© Copyright 2024 Skyleigh Aspen Thompson