Fast-casual burger chain Shake Shack Inc. raised $105 million in its initial public offering and is offering 5 million shares at $21, above the previous $17 to $19 price range, valuing the company at more than $700 million. Shake Shack will list on the New York Stock Exchange Friday under the symbol "SHAK."
The company filed for an initial public offering on Dec. 29 with the U.S. Securities and Exchange Commission and plans to use a portion of the IPO proceeds to open new stores and renovate existing ones.
The company opened 10 U.S. stores in 2014 and plans to open at least 10 new domestic stores each year, beginning in fiscal 2015, for the "foreseeable future." There are 63 Shake Shacks worldwide in nine countries and 34 cities, including Dubai, Istanbul, London and Kuwait.
According to the company's SEC filing, it plans to expand its footprint to at least 450 stores by opening eateries in new and existing markets. Shake Shack plans to fill in existing markets such as New York, Boston, Philadelphia, Washington, Atlanta, Chicago and South Florida and also enter new markets, such as Austin.
“Shack sales,” which represent combined sales of food and beverages in domestic company-operated Shacks, generated $79 million for the first nine months of 2014, excluding licensing revenue. That compares with $56.8 million during the same period a year earlier, an increase of 39 percent. The growth was driven primarily by the debut of 10 domestic stores from September 2013 to September 2014.
Meanwhile, Shack sales were $78.6 million for the full year of 2013 compared with $55.6 million in 2012, an increase of 41.4 percent, boosted by the opening of eight domestic company-operated Shacks in 2013.