We previously mentioned Shake Shack’s IPO filing here.
SHAK increased its offering range from $14-16 to $17-19 and ultimately priced at $21, raising $105 million (before expenses and underwriting discounts). Demand was obviously high for these burger purveyors. At this writing, the stock price is $45.90 and the market cap is about $1.6 billion. It has 63 restaurants and net income for 2013 of $5.4 million (before adjustments for certain transactions).
By way of comparison:
Buffalo Wild Wings owned 434 locations and franchised an additional 558 locations, had net earnings for 2013 of $71.6 million and has a market cap of about $3.4 billion.
Bloomin’ Brands owned and operated 1,344 and franchised 164 restaurants under the Outback, Carrabba’s, Bonefish, Fleming’s and Roy’s brands, had net income for 2013 of $214.6 million and has a market cap of about $3.2 billion.
Or El Pollo Loco: 2013 loss of $16.9 million but net income of $38 million through three quarters of 2014 – $984.3 million market cap.
Do you think that huge future location growth is built in to this price. Do you think we think so? There is some serious brand building going on among burger eaters and investors.