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Eight Revealing Facts From Shake Shack's IPO Filing

Inside Danny Meyer's plan to build more than 400 new Shake Shacks in the U.S.
relates to Eight Revealing Facts From Shake Shack's IPO Filing
Photographer: Michael Nagle/Bloomberg

In 10 years, Shake Shack has grown from a line-around-the-block seasonal outpost to an international burgernaut, with "Shacks" in London and Dubai, and founder and restaurateur Danny Meyer is getting ready to take the company public. In documents filed with the Securities and Exchange Commission today, Meyer announced plans to raise $100 million in an initial public offering that could value the company at as much as $1 billion, or about half the size of Papa John's. "If you're interested in owning part of Shake Shack, you will no doubt want to read every word of this prospectus," Meyer wrote in a letter included in the filing. For those who don't have the time, here are the highlights:

Shake Shack everywhere. Investors care about growth, and Shake Shack has a very clear, straightforward plan: Open more stores. For well-established chains, there's more pressure to improve same-store sales or sell licenses to outside operators. Shake Shack will have to do that, too, but “the number of new Shack openings relative to our comparable Shack base remains our primary driver of growth,” according to the S-1. The chain has opened 18 company-operated Shacks since 2012 and is on pace to double revenue over the same period.