Shake Shack CEO Randy Garutti Raves About Astronomical Stock Value
Shake Shack went above and beyond expectations when the burger chain went public. Initial price offerings hovered last week at $21 per share, but the market price more than doubled the IPO, and investors today were trading at $49 per share. The company is now worth $1.6 billion, but CEO Randy Garutti expects even more growth for the popular fast casual burger chain.
“Our reaction to the IPO is the same reaction I’ve had every time we open a Shack and all these people line up outside,” Garutti told The Daily Meal in an interview. “We continue to be amazed by the strength of the brand. Today is just another piece of the path of our journey for this company. This says that there has been a seismic shift in eating behaviors. People want to know where their food comes from, and they are drifting away from QSRs.”
Garutti explained that Shake Shack is planning on opening 10 Shacks per year across the country. Although they would like to dip into new markets (perhaps California?), for now expansion will occur in pre-existing markets like Boston, Long Island, Chicago, Orlando, and Austin. The second Austin location of Shake Shack will be opening later this year.
Financial experts, like columnists in Forbes, have warned that the Shake Shack stock market success could be short-lived because the company has “thin profit margins,” and has been experiencing “slowing growth,” to which Garutti essentially says, “bring it on” to his critics.
“People who understand us know we are in it for the long haul,” he said.