Shake Shack Files for IPO


Serving up burgers, fries, ice cream and Enlightened Hospitality.

Shake ShackShake Shack files for IPO.

Shake Shack is not just the latest casual dining company filing to go public, it is a modern day “roadside” burger stand.

It was founded by Danny Meyer, who must be prominent in the industry since he is name checked a few dozen times in the filing. For example,

The principles of “Enlightened Hospitality,” as defined by Danny Meyer, state that we prioritize our own people above all else, because we understand that taking care of each other is the foundation that enables us to provide uncommon excellence and hospitality to our team members, guests, our community, our suppliers and our investors. We refer to our customers as “guests,” as we treat anyone who walks into our restaurants, or “Shacks,” as if they were guests in our home.

Getting past the corporate niceties, Shake Shack had $78.6 million in sales in 2013, up from $55.6 million in 2012. There was also some licensing revenue that was minor in comparison. Net income was $5.4 million in 2013 (6.6% margin), up from $4.1 million in 2012 (7.9% margin).

The prospectus claims non-GAAP profit margins exceeding 25%, but that is at the unit-level and ignores substantial expenses.

We’ll see how they do as compared to the likes of recent restaurant and consumer food companies like Papa Murphy’s (FRSH), El Pollo Loco (LOCO) and Potbelly’s (PBPB).

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