Shake Shack IPO: Shares rocket 130 percent in market debut

Shake Shack stock spiked more than 130 percent in its trading debut Friday after pricing at $21 per share. Restaurateur Danny Meyer started Shake Shack, which debuted under the ticker symbol 'SHAK,' in 2001 out of a hot dog cart in a New York City park.

|
Brendan McDermid/Reuters/File
Shake Shack founder Danny Meyer (3rd R) and Shake Shack CEO Randy Garutti (2nd R) ring the opening bell at the New York Stock Exchange to celebrate their company's IPO January 30, 2015. Shares of gourmet hamburger chain Shake Shack Inc soared 130 percent in their first few minutes of trading on Friday, valuing the company that grew out of a hotdog cart in New York's Madison Square Park at nearly $2 billion.

Hamburger chain Shake Shack spiked more than 130 percent in its trading debut Friday after pricing at $21 a share. 

The company is trading under the ticker symbol "SHAK" on the New York Stock Exchange. It opened at $47 per share.

Restaurateur Danny Meyer started Shake Shack in 2001 out of a hot dog cart in a New York City park.

"We didn't have any dreams that today would ever come," he told CNBC after the stock priced. "We wanted to open a hot dog cart to help a park in Madison Square Park. And when you put a great product together with amazing people with the kind of heart that you have felt here on the floor, these people are doing it, and it's our staff that this day is for."

The chain has 63 locations within the U.S. and internationally. In the year ended Dec. 25, 2013, Shake Shack's revenue totaled $82.5 million, a $25 million revenue gain since the 2012 fiscal year, according to an SEC filing.

Shake Shack founder Danny Meyer rings a ceremonial bell during the company's IPO on the floor of the New York Stock Exchange January 30, 2015.

Friday's trading values Shake Shack at more than $1 billion.

Asked whether the valuation put considerable pressure on the chain, Meyer said, "We cook one burger at a time with one smile at a time, and I don't know how you value that."

While sales at comparable stores have slowed, future growth will come from restaurant expansion, Randy Garutti, Shake Shack CEO, told "Squawk on the Street." He said the company has just gotten started and it will be a growth story for years to come.

"There's a seismic shift in how people are eating today. People are trading up from [quick serve restaurants]," he said. "I know my kids and my kids' generation, they're not eating fast food. They want more. They expect more."

What are Shake Shack shares doing now? (Get the latest quote here.)

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.

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.

QR Code to Shake Shack IPO: Shares rocket 130 percent in market debut
Read this article in
https://www.csmonitor.com/Business/Latest-News-Wires/2015/0130/Shake-Shack-IPO-Shares-rocket-130-percent-in-market-debut
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe