Foodie-favorite Shake Shack (NYSE: SHAK) made its debut on the New York Stock Exchange today. Shares sky-rocketed 130% higher. The burger joint’s initial public offering was priced at $21 a share Thursday evening, which was already above the price the company set earlier in the week.
The initial pricing of $21 a share meant that Shake Shack raised $105 million and increased its worth to over $745 million Thursday evening. The company sold 5 million shares.
Shares opened Friday at $47 and quickly rose to over $52 a share before dipping back down to $48.77.
Founder and Chairman Danny Meyer owns a 21% stake in the company, or about 7.4 million shares. Overnight, Meyer saw his initial $156 million stake grow to over $350 million. Who else reaped the benefits of Friday’s impressive debut? Select Equity Group, Leonard Green, Jeff Flug (a Shake Shack boar member) Alliance Consumer Growth and CEO Randy Garutti.
To celebrate its debut, the Shake Shack said they were going to turn the NYSE into the New York Shack Exchange. A Shake Shack food truck will be parked in front of the exchange, dishing up free food.
Shake Shack first opened in 2001 as a hot dog cart in New York City’s Madison Square Park. The company is expanding, but not too rapidly. It operates 63 restaurants around the world, and 16 of them are right in the New York metropolitan area. Shake Shack outposts are already making headway in global markets with stands open in Kuwait, London, Moscow, Turkey and the United Arab Emirates. The company is planning on opening 10 new locations in the United States each year as well as additional international locations.
Shake Shack prides itself on using sustainable ingredients, which includes hormone- and antibiotic-free beef. A burger at Shake Shack will cost you twice as much as a burger at McDonald’s, but the success that the burger joint has seen is proof that customers are willing to pay more for fast food that’s made better.