Danny Meyer and private-equity firm Leonard Green & Partners
are among the Shake Shack Inc. stockholders that could see some
proceeds from a secondary stock offering announced Monday.
The burger chain said selling stockholders will offer at least 4
million shares.
In after-hours trading, the stock recently traded at $52.50,
down 4.2%, but the shares are still far above their January initial
public offering price of $21. The stock rose 119% on its first day
of trading.
The rapidly expanding Shake Shack is part of a wave of newer
chains like Habit Restaurants Inc., Smashburger and Five Guys
threatening fast-food icons like McDonald's Corp.
The company has 71 locations, including 42 in the U.S.
In May, Shake Shack raised its revenue guidance for the year as
sales grew a better-than-expected 56% in the quarter ended April
1.
Another Shake Shack private-equity backer, Alliance Consumer
Growth, and Mr. Meyer's Union Square Hospitality Group recently
invested in California chain Tender Greens, which offers items such
as marinated steak and grilled Thai octopus salad in a fast-casual
format.
Write to Josh Beckerman at josh.beckerman@wsj.com
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