New York’s Shake Shack, the “modern ‘roadside’ burger stand” went global Friday morning, pricing individual shares of its initial public offering at $21.
The burger business is booming. In 2014, Americans ordered 9 billion burgers despite high costs due to the spike in beef prices (up about 13 percent in 2014 from 2013). That’s a 3 percent increase in burger orders from 2013. But the burger renaissance may only apply to some.
While Shake Shack, a “fast-casual” joint that boasts all-natural antibiotic-free beef and $10 starting wages, generated $79 million in sales for the first nine months of 2014, according to Fortune, it takes one day for McDonald’s, the classic fast food joint, to accrue that revenue. But Fortune also reports that the fast food company is losing market share, sales and public trust in their corporate identity.
McDonald’s has more than 35,000 locations while Shake Shack has 63 worldwide. Shake Shack has taken their time with expanding. Most of its locations are on the east coast, particularly in its hometown New York. Today, to celebrate its debut as a public company, Shake Shack is reportedly serving free food from a food truck on Wall Street.