Upscale burgers are a fad but when has that been bad for an IPO? I remember when people called Subway a fad. That wasn't true. It quickly became one of the most successful franchises out there. Shake Shack is much smaller but an IPO causes a massive infusion of capital. This IPO sounds like money in the bank to me.
Shake Shack is a great investment as it captures a whole different market segment than your traditional McDonalds or Burger King. It provides the kind of service and environment that many talk about when they think of the 1950s family diner. Shake Shack doesn't need to overtake the others, it just needs to offer an alternative to a consumer who may want a burger, but not want to go to McDonalds.
Shake Shak is a burger joint with 63 locations worldwide. Company has raised over $100 million, primarily to build new stores. Shake Shack’s sales of $84.5 million in 2013 were up 45 percent from the year before and those numbers continue to grow every year. Company owners still plan to make more investments and improve their product quality.
Shake Shack just announced they were going public. Does it mean it is a good investment? I don't think so. In these times of a difficult economy, people are not going to just spend on unneeded items. Shake Shack is an unneeded item. While the company may see good profits at first, it is believed it won't last long.