Turns out the real golden arches are at Shake Shack.
The upscale burger chain launched from a hot dog cart in Madison Square Park made a sizzling Wall Street debut on Friday with stock prices more than doubling in value.
For Shake Shack founder Danny Meyer that made for a really happy meal. His 21% stake in the company was at one point worth nearly $400 million.
The initial public offering came with a free hamburger handout outside the New York Stock Exchange with scores of Shake Shack fans standing in the January cold for a taste.
From food trucks stationed outside the Wall Street mainstay Shake Shack handed out free sausage egg and cheese breakfast sandwiches before 11 a.m. and plans to serve free burgers until 2 p.m. The New York based company will also give out swag at locations across Manhattan it said.
Inside NYSE investors were going crazy for the burger joint as stock prices soared within minutes.
Five million shares were sold Thursday at $21 apiece giving Shake Shack a $105 million initial public offering. By the end of trading Friday the new stock was valued at $45.90 per share.
Alex Rud for New York Daily News Hundreds of people waited in line to get their hands on a burger by the New York Stock Exchange on Friday.BRENDAN MCDERMID/REUTERS Patrons stand in line for free breakfast from Shake Shack in front of New York Stock Exchange to celebrate the company's IPO. shakeshack/via Twitter The company is traveling around Manhattan to hand out free samples in honor of the company s IPO Friday.Scott Olson/Getty Images The burger chain with currently has 63 locations will trade on the New York Stock Exchange under the ticker symbol SHAK. EnlargeThe offering raised the value of the chaim to about $ 1.6 billion the New York Times reported.
Underwriters had set an expected price range of $17 19 per share raised from an initial $14 $16 due to strong demand Reuters reported.
CEO Randy Garutti was thrilled by the stock showing and said the numbers indicated a change in the way Americans view fast food.
My kids will grow up in a generation of people who isn t going to see fast food in the way it s been seen over the last few decades he told Bloomberg Television. And those people generally want to go to a place like Shake Shack.
The burger chain is known for using hormone free and antibiotic free beef along with natural ingredients. The burgers are also cooked to order and its thick milkshakes draw raves.
Shake Shack's cult following means there are often massive lines at Manhattan and Chicago locations but Friday's queues appeared extra long.
shakeshack/via Twitter Hamburger chain Shake Shack went public on the New York Stock Exchange under the ticker symbol SHAK Friday.The NYSE hung a banner over the building in honor of the chain's debut.The chain attracts a relatively affluent clientele which spends roughly $30 for a meal for two considerably more than diners spend at struggling fast food giant McDonald's.
The hot dog cart owned by Meyer s Union Square Hospitality Group opened in 2001 and exploded into the current international phenomenon with 63 locations in nine countries.
The company has said it plans to open 10 U.S. company operated restaurants each year and could eventually grow to at least 450 locations.
While Shake Shack has been slower to add restaurants its domestic average annual sales of $5 million per location for 2013 were about double Chipotle's.
J.P. Morgan and Morgan Stanley were lead underwriters for the IPO.
With News Wire Services
lmcshane nydailynews.com
Related Stories Andrew F. Smith Shake Shack s rise and fast food s fall Shake Shack to be listed on NYSE Fries of New York
No comments:
Post a Comment