Anyone still think a new burger franchise has it's market cap because of QE policy from Bernanke ? Oh yes, you do. Wow. Of course, you are the same guy who though the internet bubble occurred prior to 1997.
Burger franchises cannot justify these crazy valuations. There is too much competition from other great franchises. Five Guys has a quaint novelty by offering free peanuts while you wait and you can simply throw the shells on the floor. Don't laugh. There used to be a famous franchise in Carolinas that locals and tourists flocked to. Very simple setup, easily repeatable/managed. They have a sign to tell you were the potatoes came from for the particular season. Smashburger from the Colorados which has these thin gourmet fries with olive oil and italian spices. A common gourmet touch in a lot of big city foo-foo restuarants. My favorite: Culver's with their butterburgers and fresh frozen custard made daily ( That's ice cream for you heathens.) I was seriously waiting for this IPO for 3+ years to back the truck up. Their theme is being a wholesome, family oriented joint. And if you go to Wisconsin, you'll see 3 Generations together! The place is staffed with people straight out of Archie comics. When I brought my Mom who has only lived in America for 20 years there, she squeeled "how cute!" at our girl at the register. I almost died. And countless other burger joints...
Oh, I have been too Shake Shack , too. Did they just do a roll up and convert all the Wendy's restaurants? Nothing special.
Five Guys figured out how to mass distribute never-frozen burger patties. No freezers in a five guys restaurant (except the ice makers and they are IN FRONT of the counter). Peanuts and potatos aren't what makes Five Guys special. I don't get Shake Shack and Smash Burger. The appeal of the original Shake Shack was sitting in Madison Square park with all the yuppies and the trees.
Burger chains do not have to justify anything except effectively run their company. Nobody creates and runs this kind of business because of federal monetary policy. Only in the nonsensical dream world of S2007S are all these realities connected. Put it this way, when S2007S sees a Shake Shack, he likely instantly goes into a rage about Bernanke and his policies, and regrets how he missed out on easy trading profits on a bull market he totally missed. To most others, it's just a place to eat they can try or ignore. Perspective, S2007S has none.
Shake shack...just another Burger franchise in a saturated market.... A loss and sales are slowing in their latest quarterly results.....they went public just in time... Shake Shack [ SHAK 46.90 +1.12 (+2.45%) ]—The newly public restaurant chain reported a fourth quarter loss and said same-restaurant sales growth would slow this year.
SHAK prospectus http://www.sec.gov/Archives/edgar/data/1620533/000104746915000523/a2222881z424b3.htm SHAK announcement about closing of IPO http://investor.shakeshack.com/inve...g-of-its-Initial-Public-Offering/default.aspx Sold 5,750,000 class A common shares at $21.00 Class A total share count: 12,058,147 Class B total share count: 24,191,853 Share count used in 31 December 2014 earnings report: 29,977,000 Q4 2014 earnings report on 11 March 2015: http://investor.shakeshack.com/inve...scal-Year-2014-Financial-Results/default.aspx Revenue of $118.5 million for FY 2014. .
SHAK went public on 30 January 2015: http://seekingalpha.com/article/2868146-shake-shack-should-you-buy-into-the-ipo-hype Comparison to CMG at its IPO: http://seekingalpha.com/article/2868936-consider-shorting-the-shake-shack-now .