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Shake Shack Prepares to Go Public with Set IPO Range of $14 to $16 Per Share

Shake Shack has been preparing to go public for a little while now—Danny Meyers New York-based better burger chain first released its initial publ...

Frazer Jones
|Jan 21|magazine8 min read

Shake Shack has been preparing to go public for a little while now—Danny Meyer’s New York-based better burger chain first released its initial public offering at the end of December. Today Shake Shack took its move into the public forum one step further by setting a range for its IPO. According to the New York Times, that IPO range is a substantial $14 to $16 per share.

How does that stack up as far as IPO set ranges go? It seems to be about on par with its peers in the quick service business—in October of 2014 The Habit Burger Grill filed its own initial public offering and set its price at $18, and just a little bit further back in July El Pollo Loco priced its shares at $13 to $15. In neither case did the stock turn out to be overvalued, either. Today The Habit is trading at just over $30 and El Pollo Loco, after six months and some roller coaster-ish ups and downs, is sitting at $23.40—not the highest it’s ever been, but still respectably well above its initial offering.

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In its own right, Shake Shack has more than proved its worth over the decade that it’s been in business. The regional burger chain is world famous and boasts 63 locations, most in New York but with limited expansion efforts across the globe from Las Vegas to Dubai. This IPO could give Shake Shack the funding and support it needs to take that growth even further—according to reports, the chain plans to open 10 new locations a year with a long-term goal of 450.

Shake Shack is planning to sell 5 million Class A shares during its initial public offering under the symbol SHAK, and expects to raise net proceeds of around $69.8 million in the process.

 

[SOURCE: New York Times via Eater; Bloomberg]