Shake Shack (SHAK) : 5-month performance

Shake Shack (SHAK) reported earnings on 11 May 2015

• 2nd earnings report since going public on 1/30/15

Shake Shack (SHAK) : 3-month performance

Shake Shack (SHAK) : 3-week performance

Shake Shack (SHAK) began trading on the NYSE on 30 January 2015

• At $49 / share, Shake Shack has a market cap of $1.75B

Shake Shack files for IPO

U.S. burger chain Shake Shack on Monday filed for an initial public offering of up to $100 million of shares. The company said it plans to list on the New York Stock Exchange under the symbol "SHAK." 

J.P. Morgan,  Morgan Stanley, Barclays, Goldman Sachs & Co, Jefferies, William Blair and Stifel are joint underwriters on the deal. The company, which has 63 outlets in the U.S. and overseas, said it had total sales of $82.5 million in 2013, up from $57 million in 2012 and $19 million in 2010.

• The $135-billion burger market. The company says burgers are the “largest dine-out segment” in the U.S., with more than $72 billion in sales last year. That makes it twice the size of the pizza market, the next largest category. Burgers are “the quintessential American meal,” but are also popular overseas, with an estimated global market size of over $135 billion, the filing says.
• Manhattan vs. the world. The company distinguishes the revenues and profit margins at its Manhattan locations vs. its non-Manhattan locations, saying the volumes in Manhattan Shake Shacks have historically been higher because of “the population density and overall familiarity with the Shake Shack brand.” Since most of its future growth is expected to occur outside of Manhattan, the company says investors are better off judging the company by its non-Manhattan numbers.
• Revenue is measured in “same Shack sales.” Forget “same store sales.” At Shake Shack, they measure performance in “same Shack sales.”  As of Sept. 24, that growth had been slowing down among the 12 Shake Shacks open more than two years. “Same Shack sales growth” slowed to 3.0% as of Sept. 24 from 5.5% the prior year. 
• International presence. There are Shake Shacks in Lebanon. And Saudi Arabia, Russia, and other countries. There are 27 international Shake Shacks in all, and they are licensed locations, not company operated. The filing says the international locations paid license fees of approximately $3.5 million in fiscal 2013. More could be coming. As the filing says: “we continue to attract substantial interest from potential international licensees around the world and have identified opportunities to expand our licensing footprint in existing and new international markets.”
• Product Placement sells. Shake Shack has appeared over and over again in movies, TV shows and other media. The company brags that instead of paying for the privilege, it’s charged fees for the use of its facilities. The filing boasts of appearances in the movies Something Borrowed and Tower Heist and “the acclaimed” HBO series The Newsroom. The burger chain has also been featured in segments on The Daily Show, Saturday Night Live, CBS Sunday Morning and Late Night with Jimmy Fallon.

Shake Shack picks JPMorgan, Morgan Stanley to lead IPO

(Reuters) - Shake Shack, the fast-food restaurant chain that has developed a cult following for its 'Shackburgers', 'flat-top' hot dogs and eponymous shakes, has selected JPMorgan Chase & Co and Morgan Stanley to lead a proposed initial public offering, according to people familiar with the matter.

The potential offering, which could come as soon as this year according to the people, would be the biggest public event for a company that started out of a hot dog kiosk in New York's Madison Square Park in 2004.

While Shake Shack is expected to post earnings of around $20 million next year and the size of the IPO is likely to be small, underwriting one of the biggest burger names in the United States is a plum assignment for investment banks JPMorgan and Morgan Stanley.

Shake Shack's majority owner, Union Square Hospitality Group LLC, interviewed investment banks in recent weeks to appoint underwriters for the IPO, Reuters first reported last week.

Representatives for Shake Shack, Union Square Hospitality, JPMorgan and Morgan Stanley did not immediately respond to requests for comment.

Shake Shack would likely be the most-followed IPO out of a string of casual dining chains that have gone public this year. They include El Pollo Loco Holdings Inc , Zoe's Kitchen Inc and Papa Murphy's Holdings Inc .

Shake Shack is present in many U.S. states including New York, New Jersey, Connecticut, Pennsylvania, Florida and Massachusetts. It has also expanded internationally in cities such as London, Istanbul, Moscow and Dubai.

The company does not franchise and says it has no plans to do so in the future. Shake Shack's chief executive is Randy Garutti, a Cornell University graduate who worked his way up at Union Square Hospitality from general manager at its restaurants to lead Shake Shack.

Union Square Hospitality was founded by restaurateur Danny Meyer in 1985. It also runs other popular New York eateries, including Blue Smoke, Gramercy Tavern and Union Square Cafe.

Private equity firm Leonard Green & Partners LP agreed to acquire a 39.5 percent stake Union Square Hospitality in 2012 for an undisclosed amount.