http://www.bloomberg.com/news/2014-12-29/shake-shack-files-for-initial-offering-of-meyer-s-burger-chain.html
Shake Shack Inc. is going public and may be worth as much as $1 billion -- not bad considering New York restaurateur Danny Meyer started the joint as a public service.
Founded more than a decade ago to help support the restoration of Manhattan’s Madison Square Park, Shake Shack was an instant success, drawing long lines of urbanites attracted by Meyer’s modern spin on a roadside burger stand. Today, Shake Shack has more than 63 outlets in 30-plus cities from London to Dubai.
Shake Shack started as a hot-dog cart that later became a permanent kiosk and neighborhood fixture. Hungry urbanites have been known to hop on the subway to get their fix of $4.95 burgers and $5.15 shakes. Besides burgers and fries, the chain sells the frozen custard Meyer enjoyed as a boy in St. Louis.
Meyer’s timing with Shake Shack was auspicious. Shake Shack joined a “better burger” boom as foodies from Los Angeles to New York began clamoring for food that tasted good and used sustainably raised ingredients. Much like many fast casual joints these days, Shake Shack advertises “100% all-natural Angus beef, vegetarian fed, humanely raised and source verified.”
Meyer’s Reward
Shake Shack used a $100 million placeholder for the IPO, a figure to calculate fees that may change.
In addition to making a payment to Meyer and early backers including Leonard Green Partners & Partners LP, the company plans to use its IPO proceeds to repay debt, open new Shake Shack restaurants and renovate existing ones.
JPMorgan Chase & Co. and Morgan Stanley are managing the offering. Because Shake Shack filed as an emerging-growth company under the Jumpstart Our Business Startups Act, or JOBS Act, it must wait at least 21 days before officially marketing its share sale.
A burger, fries, and beverage at a Shake Shack restaurant in New York.
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