Breaking News Emails
Shares of Shake Shack, the restaurant chain at the forefront of the "better burger" trend, made their debut on the New York Stock Exchange Friday under the symbol "SHAK." The shares surged more than 130 percent in early trading.
The chain, which began in 2001 as a hot dog cart in Manhattan's Madison Square Park and grew to cult status, is owned by restaurateur Danny Meyer, who stands to pocket up to $155 million from the initial public offering. Shake Shack now has 63 locations in nine countries.
The IPO was priced at at $21 per share, above its proposed range of $17 to $19 per share, showing that investors also were craving a taste of SHAK. It sold 5 million shares, raising $105 million. The banks managing the deal may buy 750,000 more shares. The IPO values the chain at about $745 million. The chain attracts a relatively affluent clientele, which spends roughly $30 for a meal for two - considerably more than diners spend at struggling fast-food giant McDonald's.
-- NBC News staff, Reuters and The Associated Press