Shake Shack is the American Dream story coming true. The team behind the restaurant chain know what they're doing, and going public only shows that they are well qualified and capable. In 2001, Shake Shack was nothing more than a hot dog stand in New York. Now, almost 15 years later, Shake Shack is a respectable establishment with locations spread about New England. With their drive and determination, with credit given to their history, they will likely succeed. While they won't be the next Google or Apple, they will surely hold a great market share that should rival similar restaurant chains.
On one hand, in the places where it exists, Shake Shack has been very successful. Its popularity would suggest it's a good option for investment. But investors should remember that Shake Shack is still something of a regional chain. To really take off as a brand, it needs a higher national profile.
Shake Shack is not a good investment. While it provides a decently tasty meal that cannot be complained about, it will have a hard time competing in a public market against more basic burger restaurant staples. I cannot imagine that there are a large amount of individual interested in investing in a trendy, overpriced burger restaurant when they could invest in more stable chains that are more likely to return a profit.
I don't expect a lot of positive growth in the fast food sector as a whole, as people are becoming more health conscious. Shake Shack doesn't offer anything original or gimmicky that would suggest the potential for a trend. From an investment perspective, I can't see anything that would encourage me to risk my money in this company.