Shake Shack S-1 Analysis (This IPO will be HOT)

Shake Shack Basic Info

Exchange–Proposed Symbol: NYSE–SHAK

State of Inc: DE

Offer Amount: $100 mm

Employees: 1680

CEO: Randy Garutti

Description from S-1: “Shake Shack is a modern day “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine.”

From the S-1

’14 Sales: $106.7 mm

Sales Growth (’13-’14): 45%

# of Stores: 53

# of Franchises: 27

As of 12/30/14, there are 10 new restaurants scheduled to open in 2015.

Cost of Supplies for ’14: $30.9 mm

EBITDA ’14: 14.5%

EBITDA ’13: 10.2%

Shake Shack (NYSE:SHAK) is experiencing rapid growth and is part of the popular fast-casual sector, which includes recent IPOs HABT, LOCO, and ZOES, all of which have performed well in the public markets since their debuts. SHAK will definitely have a hot IPO; the only question is how high will it climb. SHAK might very well be the first IPO of 2015 to double in its first day of trading.

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