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Shake Shack files for IPO Shake Shack files for IPO
(about 2 hours later)
  
Burger joint Shake Shack on Monday filed for an initial public offering. Burger joint Shake Shack filed for an initial public offering on Monday, a move that the company hopes will help it grow its fleet of restaurants and take a bigger bite out of the booming  fast-casual dining market.
The chain, founded in 2004 by famed New York restaurateur Danny Meyer, has 63 outposts across the globe and raked in $140 million in sales in 2013.  The company says in its filing with the Securities & Exchange Commission that it is seeking to raise $100 million, though that figure may change. The chain, founded in 2004 by famed New York restaurateur Danny Meyer, has 63 outposts across the globe and raked in $140 million in sales in 2013.  The company says in its filing with the Securities & Exchange Commission that it is seeking to raise $100 million, though that figure that could change.
Shake Shack has been riding a wave of interest in fast-casual restaurants, in which diners are seeking healthier, fresher ingredients than those offered at typical fast-food joints. Shake Shack’s announcement comes on the heels of a hot streak for a restaurant IPOs.  The Habit Burger Grill, another fast-casual chain, has seen its stock soar nearly 90 percent over its IPO price. Zoe’s Kitchen, a Mediterranean salad and sandwich chain,  and El Pollo Loco,a grilled chicken restaurant,  also had strong trading debuts this year.  According to IPO research firm Renaissance Capital, consumer companies–a category that includes restaurants–saw a 30.8 percent average IPO return in 2014.  That’s significantly higher than the returns seen in the splashier tech sector, where average IPO return was just 13.5 percent.
The company said in its filing that sales at restaurants open more than two years were up 5.9 percent in 2013, an increase that is much greater than what was seen industry-wide that year. Renaissance Capital said that in 2014, four of the five best-performing IPOs in the consumer category were restaurants.
The burger chain plans to open at least 10 new restaurants in the United States annually for the “foreseeable future,” according to the filing.   Shake Shack believes that over the long-term, there is appetite for at least 450 of its restaurants in this country. Shake Shack reported in its filing that sales at restaurants open more than two years were up 5.9 percent in 2013, a robust increase that outperforms the growth seen at many rival fast-food restaurants.
  Shake Shack said in its filing that it plans to open at least 10 new restaurants in the United States annually for the “foreseeable future.” Over the long-term, the company believes there is appetite for at least 450 of its restaurants in this country.
Shake Shack’s plan for expansion suggests that its leaders believe the tidal wave of interest fast-casual dining is nowhere near cresting.  While old-school fast-food outposts such as McDonald’s and Pizza Hut have lately struggled to attract diners, chains such as Chipotle, Noodles & Co. and Panera Bread have found success by promising customers healthier fare made from more upscale ingredients.
The company has proposed to trade on the New York Stock Exchange under the ticker symbol “SHAK.”
The business that would become Shake Shack was initially launched as a hot dog cart in a Manhattan park.  It was an offering that differed sharply from Meyer’s other eateries, which include upscale dining destinations such as Union Square Cafe, Gramercy Tavern and Maialino.  Soon, the cart gave way to a kiosk, and when the long lines for burgers and shakes showed no signs of abating, Meyer and his partners in Union Square Hospitality Group began opening more locations.  Today, Shake Shack operates almost half of its global stores, the others are licensed.