Shake Shack has some very big plans.
The New York gourmet burger chain filed papers to go public on Monday, saying it would use the as-yet-undetermined amount of proceeds from the stock sale in part to grow the number of US stores from 36 to about 450.
The Danny Meyer-led company will also use the cash proceeds to grow internationally — from its current footprint of 27 non-US stores, it said in the regulatory filing.
A timeline to reach the 450 stores was not given.
However, Shake Shack, where a single burger at its Grand Central Terminal store goes for $4.95 and a shake sells for $5.15, said it plans to open at least 10 new US company-operated Shacks each year, beginning in fiscal 2015, for the foreseeable future.
Profits at the chain fell 20 percent in the nine months ended Sept. 20, to $3.5 million, despite a 39 percent rise in revenue in the period compared to the year-earlier period. Same-store sales rose 3.0 percent, down from 5.5 percent a year earlier
In 2013, net profits grew 31.2 percent to $5.4 million on a 41.4 percent rise in revenue. Same-store sales grew by 5.9 percent, according to the filing.
To compare, Nasdaq-traded Red Robin Gourmet Burgers has about 500 locations and a $1 billion market cap. Red Robin’s shares have risen 350 percent over the last five years, but only 5 percent in the last 12 months.
Private equity firm Leonard Green & Partners in 2010 bought 40 percent of Shake Shack and stands to benefit handsomely from a stock listing and fast growth.
“We open Shacks in areas where communities gather, often with high foot traffic and substantial commercial density such as New York City’s Theater District, London’s Covent Garden and Dubai’s Mall of the Emirates,” Shake Shack said in the Securities and Exchange Commission filing.
“We will continue to not only fill in existing markets such as New York, Boston, Philadelphia, Washington, D.C., Atlanta, Chicago and South Florida to leverage operational effectiveness as we cluster in high-density markets, but also enter new markets, such as Austin, where we have signed leases,” it added.
Meyer, 56, who founded the chain and serves as its chairman, is a New York high-end restaurant fixture. He also owns and operates the Union Square Cafe, Gramercy Tavern, Blue Smoke, Jazz Standard, The Modern, Maialino, Untitled, North End Grill and Marta.
As is typical of early IPO filings, the Shack Shack papers on Monday did not disclose Meyer’s stake in the company not the equity interest of other large owners. It also did not list how much money the chain expected to raise or if Meyer would be cashing out by selling shares into the IPO.
JPMorgan is leading the underwriting with Latham & Watkins giving legal advice.