Shake Shack Initial Public Offering May Be Worth $1 Billion
Have you ever bitten into a juicy Shackburger and wished you could invest in it? Well, pretty soon that will be an option. Shake Shack is set to go public soon, and when it does, investors predict that Danny Meyer’s popular burger and shake chain will be worth $1 billion. That would mean, according to Bloomberg, that Shake Shack’s initial IPO would value the company at five times their annual projected earnings of $20 million.
Shake Shack is the latest in a line of popular fast casual chains to go public, including Chipotle, El Pollo Loco, and Noodles and Co. Reuters has hinted that Shake Shack might plan to go public as early as late 2014.
Investors are predicting that shares of the burger chain will do well, considering the fact that within just 10 years of opening, Shake Shack has opened more than 50 locations, including a few internationally.
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Joanna Fantozzi is an Associate Editor with The Daily Meal. Follow her on Twitter@JoannaFantozzi