Business: Shake Shack Goes Public

About 14 years ago, Danny Meyer opened up a hot dog cart in Madison Square Park.  Now, that stand has turned into Shake Shack, a burger empire, which has started trading on the New York Exchange this week. It has a valuation of about $745 million, and it will definitely increase Mr. Meyer’s net worth by $155 million. Shake Shack has become one of the most prominent servers of fresh-casual fast food. It gives customers a chance to eat burgers that have enjoyed a nice makeover with authentic ingredients. Shack Shack is still relatively small compared to Chipotle, who had a $327 million net income, while Shake Shack reported a $5.4 million net income in 2013.  Leonard Green and Partners, a Los Angeles private equity firm, invested in the company in 2012, and its holding in the company can be valued at $193 million. With Shake Shack’s ambitious expansion plans and high level of hospitality that the company is known for, there is no doubt that there will be growth for the “better burger.”

Contributor: Chelsea Edirisuriya

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Comment (1)

  1. Madeline Kaller     January 31, 2015 at 12:44pm

    Shake Shack’s debut on the New York Stock Exchange has been a huge success. MSN reports that “shares opened at $47, a 134% pop, climbed above %52 in opening trading before dipping back to $48.77 for a 132% advance”.

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