Business

Shake Shack Preparing For An IPO

A ShackBurger is seen in this arranged photograph at the first Shake Shack burger restaurant to open in Moscow, Russia, on Tuesday, Dec. 24, 2013. The New York burger joint known for its queues will sell ShackBurgers for 235 rubles ($7.15), about 50 percent more than in New York and almost triple the price of a local Big Mac. Photographer: Andrey Rudakov/Bloomberg via Getty Images
A ShackBurger is seen in this arranged photograph at the first Shake Shack burger restaurant to open in Moscow, Russia, on Tuesday, Dec. 24, 2013. The New York burger joint known for its queues will sell ShackBurgers for 235 rubles ($7.15), about 50 percent more than in New York and almost triple the price of a local Big Mac. Photographer: Andrey Rudakov/Bloomberg via Getty Images

(Reuters) - Shake Shack, the fast-food restaurant chain famous for its hamburgers and milkshakes, is preparing to go public, seeking to tap stock market demand for popular casual dining companies, according to people familiar with the matter.

Shake Shack's majority owner, Union Square Hospitality Group LLC, has interviewed investment banks in recent weeks to appoint underwriters for an initial public offering, the people said on Friday.

Shake Shack, which started out of a hot dog kiosk in New York's Madison Square Park in 2004, is expected to post earnings of around $20 million next year, one of the people added.


The sources asked not to be identified because the deliberations are private. A Shake Shack spokesman declined to comment, while Union Square Hospitality did not immediately respond to a request for comment.

(Reporting by Olivia Oran and Greg Roumeliotis in New York; Editing by Chris Reese)

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