Skip to footer

Shake Shack IPO could be worth $80M in stock market debut

Shake Shack announced Tuesday that it plans to raise up to $80 million from an IPO, pricing shares between $14 and $16. Shake Shack expects to list on the New York Stock Exchange under the "SHAK" ticker symbol.

|
Keith Bedford/Reuters/File
Passersby walk in front of the Shake Shack restaurant in the Manhattan borough of New York. Burger chain Shake Shack Inc, which grew out of a hot dog stand in New York's Madison Square Park, has filed for an IPO, planning to raise up to $80 million in its stock market debut.
  • By Staff Associated Press

Burger chain Shake Shack, which got its start as a single hot dog cart in New York City, plans to raise up to $80 million from an initial public offering of its common stock.

The company said Tuesday that it anticipates its IPO of 5 million shares pricing between $14 and $16 per share.

A portion of Shake Shack's Tuesday announcement is below:

Shake Shack Inc.oday announced that it has commenced an initial public offering of 5,000,000 shares of its Class A common stock (the “Offering”) pursuant to a registration statement filed on Form S-1 with the Securities and Exchange Commission. In connection with the Offering, the Company intends to grant the underwriters the option to purchase up to 750,000 additional shares of its Class A common stock. The estimated price range for the initial public offering is $14.00 to $16.00 per share of Class A common stock. Shake Shack has applied to list its Class A common stock on the New York Stock Exchange under the symbol “SHAK”. Following the offering, Shake Shack will be a separate company from the privately held Union Square Hospitality Group.

Last month Shake Shack Inc. disclosed in a regulatory filing that it was hoping to raise up to $100 million from its IPO, but it didn't say how many shares it planned to offer or at what price, so the figure was subject to change.

Shake Shack said that it plans to give the underwriters the option to buy up to 750,000 additional shares of its stock.

The origins of the restaurant date to 2001, when privately held Union Square Hospitality Group, a company owned by restaurateur Danny Meyer, opened a hot dog cart in Manhattan's Madison Square Park. Three years later a more permanent kiosk opened in the same park. It now has 63 locations in nine countries, according to a Tuesday regulatory filing.

Shake Shack said that after the offering it will be a separate company from Union Square Hospitality Group.

In 2013, Shake Shack had revenue of $84.5 million, up 45 percent from the year before. It posted a profit of $5.4 million in 2013, up 31 percent from 2012.

Shake Shack cooks its burgers to order and promotes its use of natural ingredients, including hormone- and antibiotic-free beef. It's known for its long lines and its vibrating pagers that signal when an order is ready. The chain calls its restaurants "shacks," and uses the word to describe its menu items. The ShackBurger, for example, is topped with ShackSauce and a hot dog is named the Shack-cago Dog.

Other fast-casual restaurant operators have fared well after their IPOs, including chicken chain El Pollo Loco Holdings Inc. and Mediterranean-style restaurant chain Zoe's Kitchen Inc.

Shake Shack expects to list on the New York Stock Exchange under the "SHAK" ticker symbol.

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.
editor@csmonitor.com
Subscribe
Mark Sappenfield
Editor

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

Subscribe to insightful journalism

QR Code to Shake Shack IPO could be worth $80M in stock market debut
Read this article in
https://www.csmonitor.com/Business/Latest-News-Wires/2015/0120/Shake-Shack-IPO-could-be-worth-80M-in-stock-market-debut
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe