Shack And Shake Ipo

Shack and shake ipo

Fast casual burger restaurant


Traded as
GenreFast food restaurant
FoundedJuly 2004; 15 years ago (2004-07), in New York City, New York, United States
FounderDanny Meyer
HeadquartersNew York City, New York, United States

Number of locations

  • 168 (United States)
  • 86 (International)

Areas served

North America, Europe, Middle East, Oceania, Asia

Key people

Jay Livingston CMO
ProductsHamburgers, hot dogs, french fries, chicken, milkshakes, custards, beer, wine
RevenueUS$459.31 million (2018)

Operating income

US$31.71 million (2018)

Net income

US$15.18 million (2018)
Total assetsUS$433.50 million (2018)
Total equityUS$433.51 million (2018)

Number of employees

6,101 (2018)
Footnotes / references

Shake Shack (NYSE: SHAK) is an American fast casual restaurant chain based in New York City.

It started out as a hot dog cart inside Madison Square Park in 2001, and its popularity steadily grew. In 2004, it moved to a stand within the park, expanding its menu from New York–style hotdogs to one with hamburgers, hotdogs, fries and its namesake milkshakes.

Shake Shack More Than Doubles Its I.P.O. Price in Market Debut

Since its founding, it has been one of the fastest-growing food chains, eventually becoming a public company filing for an initial public offering of stock in late 2014. The offering priced on January 29, 2015; the initial price of its shares was at $21, immediately rising by 123% to $47 on their first day of trading.[3][4][5][6]

Shake Shack Inc. owns and operates more than 249 locations both domestically and internationally,[7] typically located in stand-alone restaurants and shopping malls.


Early beginnings and concept

In 2000, New York City began the rebuilding of Madison Square Park, which had fallen into a state of disrepair and misuse. As part of the redevelopment, restaurateur Danny Meyer helped spearhead the creation of the Madison Square Park Conservancy to help redevelop it.

One of the first things the Conservancy did in its goal to improve the park was to host an art exhibit called "I <3 Taxi" inside of the park to raise awareness of the renewal effort.[8] Meyer's Director of Operations, Randy Garutti, established a hot dog cart which was run out of the kitchen of Eleven Madison, one of Meyer's Union Square Hospitality Group (USHG) operations.

Over time, the cart became extremely successful, and remained in operation for nearly three years.[9]

In 2004, the city began taking bids to operate a new kiosk-style restaurant within the park; Meyer outlined his idea for the space, and opened the first Shake Shack in July 2004. From its beginning the restaurant was not designed to be a chain; it was intended to be a single shop location designed specifically for New York City.

However, as the original location's sales continued to grow, the group realized that there was a market for expansion.[9]

Since its opening, Shake Shack has grown to be the largest part of the USHG's portfolio.

Its average store revenue of US$4 million is more than twice that of McDonald's average store revenue within the United States.[10] Its popularity is such that in the summer at its original location, the wait in line for service can stretch to over an hour, especially on weekends when the weather is pleasant.

A webcam on the restaurant's web page shows the current line in real time.[10][11]


In June 2010, Shake Shack opened its first restaurant outside of New York City at the Lincoln Road Mall in Miami Beach's South Beach neighborhood.[12][13][14] In April 2017 the location completed a month-long renovation that added 586 square feet of space, bringing its seating capacity to 106.[15]

On July 12, 2010, Shake Shack restaurants were opened in the Theater District[16] and the Upper East Side.[17][18] The Upper East Side location's opening was significant because it "lifted" East 86th Street, an urban shopping district which had fallen on hard times; the location had been vacant, and even when occupied, it was described by a neighbor as "never anything good there...dingy and dilapidated...almost an eyesore."[17]

In July 2011, it was announced that Shake Shack had reached a deal with the MTA to open a location in the lower level of Grand Central Terminal.[19] This project was delayed because the tenant occupying the space Shake Shack was to take over, Mexican eatery Zócalo, refused to vacate after the expiration of their lease and filed suit, arguing that the "bidding process (for retail space in Grand Central) is corrupted."[20] The suit was dismissed and Zócalo appealed.

In October 2012 Zócalo filed for Chapter 11 bankruptcy protection.[21] In early May 2013, Zócalo vacated the space, and the new outlet opened for business on October 5, 2013.[22]

Shake Shack opened its first airport location in May 2013 in JFK's newly expanded Terminal 4.[23]

IPO and continued expansion

By August 2014, Shake Shack outlets had begun operating in California, Connecticut, Delaware, Washington, D.C., Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, Nevada, Pennsylvania and Texas.[24] That month, reports surfaced that the company was preparing to go public with an IPO and was discussing an underwriting with a number of investment banks, including J.P.

Morgan, Morgan Stanley and Goldman Sachs.[24][25]

On January 29, 2015, Shake Shack priced its IPO at $21 per share. On the morning of January 30, 2015, it began trading on the NYSE at $47 per share under the ticker symbol SHAK. In April 2015, shares hit prices of $72, and hit a high of about $90 in May 2015.[26] In its IPO filing, the company stated that it planned to expand its domestic footprint to 450 company-operated stores.

While no end date was given for that expansion, the company indicated its intention to open at least 10 restaurants each fiscal year, though it later amended that target to 12 a year and then again later in 2016 to 14 stores a year, a goal that would result in a total of 450 stores in approximately 25 years.[27] Later that May, Shake Shack filed for a trademark for the term "chicken shack" leading to speculation that the company would serve chicken sandwiches.[28] The company temporarily introduced chicken sandwiches to its Brooklyn on July 7, 2015.[29] In January 2016, Shake Shack introduced chicken sandwiches across locations in the United States, having previously started serving them at all Brooklyn Shake Shack locations.[30]

On August 31, 2016, Shake Shack announced it would begin room service at the Chicago Athletic Association Hotel, the first hotel in America to offer in-room Shake Shack.[31]

In November 2016, the first Houston, Texas, location opened inside the Galleria; by March 2017, another opened inside Minute Maid Park in Downtown Houston, with another to open there in August 2019, the 5th overall in the city.

The city's 3rd opened at Rice Village in March 2018. By December, the city's 4th opened in Montrose district. In mid-December 2016, Delaware opened its very first in Newark. In February 2017, the first Michigan location was opened in downtown Detroit.[32] A second Michigan location in Troy opened on October 25, 2017. On May 10, 2017, Shake Shack opened their first Kentucky location at The Summit at Fritz Farm in Lexington.[33] That June, the company announced a location would open in Charlotte, North Carolina, in late 2017, becoming the first Shake Shack in the Carolinas.[34] California's 5 locations were all in L.A.

County, until the 6th had opened in San Diego in October 20, 2017 at Westfield UTC.

The Story Behind Shake Shack's Success

The other San Diego location opened in Mission Valley in late 2017,[35] as did a South Bay location in El Segundo in October.[36]

In July 2018, Shake Shack announced that they will officially open a store at the Bonifacio Global City business district of Manila, which opened on May 10, 2019 with the first person on the queue lined up at 10:30 PM the previous night.

On October 10, 2018, Shake Shack announced that it will officially start operations in Singapore at Jewel Changi Airport in 2019.[37]

On June 27, 2019, Shake Shack opened in Mexico City at Paseo de la Reforma, one of Mexico's busiest streets.

The opening was so popular that on opening day, people had it wait in line for about two hours.[38] The restaurant chain is expected to open 30 locations in Mexico by 2029, beginning with the next location in the south of Mexico City in Coapa.[39]

On August 3, 2019, Utah's first location opened in the suburb of Sandy and was built into a 90 year old historic elementary and high school.[40]


Shake Shack has outlets in a number of international cities including Manila, Seoul, Tokyo, Osaka, Kyoto, London, Singapore, Hong Kong, Cardiff, Istanbul, Moscow, Muscat, Beirut, Dubai, Abu Dhabi, Doha, Kuwait City, Riyadh, Shanghai, Manama, and Jeddah.[24][41][42]

In 2019, Shake Shack expanded their operations to China, Singapore, Philippines, and Mexico.



As of January 1, 2019, there were 208 Shake Shacks throughout the world; 136 were in the United States. The company expects to have over 320 locations by 2020.[43]

Shake Shack's eponymous products are its shakes, which have been reviewed and described as "some of the best in the industry".[10] It also sells chicken burgers, fries, hot dogs, frozen custards, and beer and wine.[44] In each new location, the beverage menu is customized to the local flavors of the city in which it operates.[45] Their most famous product is the ShackBurger.

Available in single or double, it contains a beef patty, American cheese, lettuce, tomato and a secret sauce.


The company has collaborated with Staple Design to create Shake Shack T-shirts, sunglasses, and other accessories, called Shack Swag.[46][47]

See also


  1. ^"US SEC: Form 10-K Shake Shack Inc". U.S.

    Forex cargo travel and toyrs

    Securities and Exchange Commission. Retrieved June 27, 2018.

  2. ^McCann, K.; Tanzilo, R. (2016). Milwaukee Frozen Custard. American Palate. Arcadia Publishing Incorporated.

    Shack and shake ipo

    p. 121. ISBN . Retrieved November 14, 2017.

  3. ^"Burgerzwerg erobert die Börse". Handelsblatt. January 30, 2015.

    Secured options binary broker

    Retrieved November 1, 2015.

  4. ^Ro, Sam (January 30, 2015). "Shake Shack Opens For Trading".

    The Shake Shack Story

    Business Insider. Retrieved November 1, 2015.

  5. ^"Burger mania: Shake Shack stock up 120%".

    Get the Lowdown on All Things Shack

    CNN Money. January 30, 2015. Retrieved November 1, 2015.

  6. ^Driebusch, Corrie (January 30, 2015). "Shake Shack Shares Surge in Market Debut". The Wall Street Journal.

    Yale School of Management

    Retrieved November 1, 2015.

  7. ^Fidelity Company profile (February 27, 2019) |
  8. ^"Shake Shack S-1".

    Shake Shack. Retrieved July 30, 2016.

  9. ^ abWolfe, Josh (January 27, 2014). "The Secret Sauce of Shake Shack's Success". Forbes. Retrieved May 27, 2014.
  10. ^ abcKramer, Katie (October 15, 2010). "Shake Shack Founder Expands His Empire".

    We’re working to make the school an even better place for future students.

    CNBC. Retrieved May 27, 2014.

  11. ^"Shake Shack S-1". Shake Shack. Retrieved July 13, 2015.
  12. ^Powers, Jacquelynn D. (June 15, 2010). "The First Burger & Fries at Shake Shack South Beach". Miami New Times.
  13. ^"Shake Shack on Lincoln Road". Lincoln Road Mall. June 2010. Retrieved July 9, 2017.
  14. ^Victoria Pesce Elliott (August 18, 2010). "3 Stars for Shake Shack".
  15. ^Reiser, Emon (April 10, 2017).

    "Shake Shack in Miami Beach undergoes renovation". South Florida Business Journal.

  16. ^Levin, Sam (July 12, 2010). "Burger lovers rejoice! Minichain Shake Shack opens in Times Square". Daily News. New York.

    Shack and shake ipo

    Retrieved July 12, 2010.

  17. ^ abGregor, Alison (January 19, 2010). "Square Feet: New Tenant Lifts a Manhattan Street". The New York Times. Retrieved August 3, 2011.
  18. ^Fabricant, Florence (August 4, 2010). "Diners Journal: Upper East Side Shake Shack Is Open". The New York Times.

    Retrieved August 3, 2011.

  19. ^Haughney, Christine (July 25, 2011). "More Crowded Crowds: Grand Central to Welcome Apple and Shake Shack".

    The New York Times. Retrieved July 30, 2011.

  20. ^Pasquarelli, Adrianne (July 20, 2012). "Shake Shack gets sidetracked at Grand Central | Crain's New York Business". Retrieved February 8, 2014.
  21. ^Pasquarelli, Adrianne (October 26, 2012).

    "Grand Central tenant Zócalo files for bankruptcy | Crain's New York Business". Retrieved February 8, 2014.

  22. ^"Danny Meyer's Shake Shack finally takes over Grand Central space | Crain's New York Business". Crain's New York. May 8, 2013. Retrieved February 8, 2014.
  23. ^"JFK Terminal 4 To Get Shake Shack, Blue Smoke, Marcus Samuelsson Concept And More (PHOTOS)".

    Shack and shake ipo

    Huffington Post. March 6, 2013. Retrieved October 21, 2017.

  24. ^ abc"Burger chain Shake Shack preparing for an IPO - sources".

    Reuters. August 15, 2014. Retrieved August 15, 2014.

  25. ^Lorenzetti, Laura (December 29, 2015). "Fast food chain Shake Shack files for an IPO". Fortune. Retrieved January 11, 2016.
  26. ^Galarza, Daniela (April 27, 2015). "Shake Shack Shares Jump to Over $70 Per Share". Eater. Retrieved January 11, 2016.
  27. ^Fahey, Mark (March 7, 2016). "Shake Shack's expansion by the numbers".


  28. ^Shah, Khushbu (May 21, 2015). "Is Shake Shack Adding Chicken Sandwiches to Its Menu?". Eater. Retrieved January 16, 2016.
  29. ^Morabito, Greg (July 7, 2015). "Danny Meyer Enters Top-Secret Launch Codes for Nuclear Chicken Sandwich A-Bomb at Shake Shack". Eater. Retrieved January 16, 2016.
  30. ^Galarza, Daniela (January 14, 2016). "Shake Shack Releases Chick'n Shack Sandwiches Nationwide".

    Eater. Retrieved January 15, 2016.

  31. ^Selvam, Ashok (August 31, 2016). "Shake Shack & Chicago Athletic Association Reach Deal To Offer Room Service".

    Eater Chicago.

  32. ^Selasky, Susan (February 23, 3017). "Detroiters celebrate Shake Shack's downtown opening". Detroit Free Press.
  33. ^Bertram, Charles (May 11, 2017). "Shake Shack opens at Lexington’s The Summit at Fritz Farm". Lexington Herald Leader.
  34. ^Peralta, Katherine (June 12, 2017)."Shake Shack is coming to Park Road Shopping Center".

    Rise and Shack

    Charlotte Observer.

  35. ^"Second San Diego Shake Shack Location To Open In Mission Valley". Retrieved October 21, 2017.
  36. ^"Shake Shack 'can't wait' to open first South Bay eatery this fall in El Segundo". Daily Breeze. June 20, 2017. Retrieved October 21, 2017.
  37. ^"Burger chain Shake Shack to open first Singapore outlet at Jewel Changi Airport".

    Shake Shack

    Channel NewsAsia Lifestyle. October 10, 2018. Retrieved October 10, 2018.

  38. ^"Así fue el día 1 de locura de Shake Shack en México". Expansión (in Spanish). June 28, 2019. Retrieved July 25, 2019.
  39. ^"¿Fan de las hamburguesas y malteadas? Shake Shack llega a la CDMX". El Financiero (in Spanish). Retrieved July 25, 2019.
  40. ^"The history of the building that will be Shake Shack's new home". Retrieved July 31, 2019.

  41. ^"Shake Shack is a modern day 'roadside' burger stand serving the most delicious burgers, fries, hot dogs, frozen custard and more!". Shake Shake. Shake Shack.
  42. ^Galarza, Daniela (December 21, 2015). "Shake Shack Expands to South Korea in 2016". Eater. Retrieved January 11, 2016.
  43. ^ abTranscripts, S.

    Shack and shake ipo

    A. (May 3, 2019). "Shake Shack Inc. 2019 Q1 - Results - Earnings Call Slides". Seeking Alpha. Retrieved May 23, 2019.

  44. ^"Food and Drink". Shake Shack. Retrieved June 27, 2018.
  45. ^Bartiromo, Michael (February 13, 2013).

    "The Man Behind Shake Shack's Menu". Mox news. Retrieved May 27, 2014.

  46. ^"Shake Shack Shop".
  47. ^Shack, Shake (September 12, 2014).

    "Shake Shack x Staple Design LTD Collaboration".

    Shack and shake ipo

    Shake Shack. Retrieved January 11, 2016.

External links

A "ShackBurger" and crinkle-cut French fries