Shake Shack Raises IPO Price

(RTTNews) - Burger chain Shake Shack Inc. in a regulatory filing on Wednesday said it has increased the price of its initial public offering to a range of $17 to $19.

The burger chain will now offer 5 million shares at $17 to $19 per share, up from its initial range of $14 to $16 per share, and can raise up to $95 million. Based on about 35.5 million shares outstanding following the offering, the current price range indicates Shake Shack with a market valuation as high as $675 million.

Shake Shack had filed for the IPO with the U.S. Securities and Exchange Commission late last month. The company has made an application to have its Class A common stock listed on the New York Stock Exchange under the symbol "SHAK."

Shake Shack is owned by Union Square Hospitality Group and has 63 locations, of which 27 are abroad. Shake Shack initially began as a hot-dog cart in Madison Square Park in New York. In 2004, restauranteur Danny Meyer opened a kiosk-style Shake Shack within the park.

Shake Shack reported revenues of $82.5 million for the fiscal year 2013, and revenues of $83.8 million for the nine-months ended period September 2014. Shake Shack's same store sales growth was 5.9 percent in 2013, compared with 7.1 percent rise in 2012

JP Morgan Chase, Morgan Stanley and Goldman Sachs are the major underwriters to the offering.

The Shake Shack IPO follows a string of successful IPOs by casual dining chains last year, including El Pollo Loco Holdings Inc. (LOCO), Zoe's Kitchen Inc. (ZOES) and Habit Restaurants, Inc. (HABT).

The company plans to give IPO underwriters the option to buy up to 750,000 additional shares.