By Corrie Driebusch 

Shares of Shake Shack Inc., a restaurant chain known for its burgers and crinkle-cut fries, more than doubled Friday in their market debut, indicating the appetite that investors have in so-called fast-casual restaurants.

The stock opened at $47.21, 125% above its initial public offering price of $21, and quickly hit a high of $52.50 before retreating. The shares, which trade on the New York Stock Exchange under the symbol "SHAK," ended their first day at $45.90.

Investors have eagerly bought-up newly-listed shares of fast-casual restaurants, in part on a bet that consumers will be spending more money eating out as falling gas prices leave more money in consumers' pockets after filling up their car's gas tanks.

In Shake Shack's case, investors say, another attraction is the company's growth plans. The company catapulted onto the dining scene more than a decade ago as a hot dog cart in a Manhattan park and still has a fairly small footprint, operating 63 restaurants. However, Shake Shack plans to open at least 10 new domestic company-operated restaurants each year, beginning in fiscal 2015, and expects to grow to at least 450 domestic Shake Shacks.

The interest in Shake Shack comes as the world's largest burger chain, McDonald's Corp., recently changed its leadership amid worsening sales declines in its core U.S. market. The declines have been blamed in part on fast-casual restaurants like Shake Shack that are winning younger consumers with fresher and more customized offerings.

Shake Shack's first-day rise in stock price exceeds the opening pop of Habit Restaurants Inc., a burger chain that went public in November. Its shares soared 120% in its first day of trading.

The IPO deal, which was led by J.P. Morgan and Morgan Stanley, raised $105 million by selling 5 million shares, and gave the chain a valuation of roughly $745.5 million.

That total doesn't count a so-called overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances.

Earlier this week, Shake Shack increased its price range to $17 to $19 a share from $14 to $16 per share, its original range.

Write to Corrie Driebusch at corrie.driebusch@wsj.com

Access Investor Kit for JPMorgan Chase & Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005

Access Investor Kit for McDonald's Corp.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US5801351017

Access Investor Kit for Morgan Stanley

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US6174464486

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more JP Morgan Chase Charts.
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more JP Morgan Chase Charts.