6 Things We Learned About Shake Shack in Its IPO Filing
The chain calls itself "fine casual" with a surprising board of directors.
-- intro: Burger stand Shake Shack filed with the Securities and Exchange Commission today its plans for a $100 million IPO with the New York Stock Exchange under the ticker "SHAK."
The report details founder and board chairman Danny Meyer's blueprint for growth and the New York-based company's recent financial history for the first time. Here are some morsels about Shake Shack:
quicklist:title: J.Crew boss joins Shake Shack's board text: Fashion brand J.Crew Group's president and executive creative director Jenna Lyons joined Shake Shack's board of directors this month, according to the company's S-1 filing.
"Ms. Lyons was selected to our board of directors because she possesses particular knowledge and experience in strategic planning and leadership of complex organizations and retail businesses," the company said in its S-1 filing.
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quicklist:title: Shake Shack plans to open 10 new restaurants a yeartext: At least for "foreseeable" future, Shake Shack plans to open "10 new domestic company-operated Shacks each year, beginning in fiscal 2015." At that rate, it will take about 3,000 years for Shake Shack to catch up to McDonald's 35,000 global locations.
quicklist:title: First "West Coast" location is now opentext: Shake Shack opened its "first West Coast" location in Las Vegas today at the foot of the New York-New York Hotel and Casino, naturally. The Las Vegas Shack’s location-specific frozen custard concretes include: "All Shook Up (vanilla frozen custard and chocolate toffee bits blended with a slice of banana peanut butter cheesecake from local bakery Gimme Some Sugar) and Jackpot (vanilla frozen custard, Belgian waffles, strawberry purée, marshmallow sauce and rainbow sprinkles)."
quicklist:title: Shake Shack is profitabletext: The company’s revenue was $82.5 million for the fiscal year that ended Dec. 25, 2013. Its net income was $5.4 million in 2013.
quicklist:title: Middle East's "growth market"media: 27884286text:
Shake Shack has locations in nine countries and the Middle East has been Shake Shack's "most prominent growth market" with 20 locations, the company says. It is followed by Turkey with four, Russia with two (the first of which is pictured with the Russian word for restaurant "pectopah") and the United Kingdom with one. The company's international licensed shacks had average unit volumes of approximately $6.1 million.
quicklist:title: New "fine casual" restaurant category text: Under the leadership of celebrity chef and founder Danny Meyer, Shake Shack describes itself as a "lifestyle brand" that has helped "pioneer the creation of a new fine casual category in restaurants."
"Fine casual couples the ease, value and convenience of fast casual concepts with the high standards of excellence in thoughtful ingredient sourcing, preparation, hospitality and quality grounded in fine dining," Shake Shack's S-1 filing states. "As a pioneer in this new category, we strive to maintain the culinary traditions of the classic American burger stand, while providing our guests a menu of chef-inspired food and drinks. Our signature items are our all-natural, hormone and antibiotic-free burgers, hot dogs, crinkle-cut fries, shakes and frozen custard. We cook our burgers and spin our shakes to order and strive to use the freshest premium ingredients available."
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