Shake Shack CEO: This Is A Growth Story For Decades To Come
Burger chain Shake Shack Inc (NYSE: SHAK) had a dream debut on the New York Stock Exchange, opening over 130 percent above the opening price and continuing to trade higher. Andy Garutti, Shake Shack CEO, and Danny Meyer, founder of Union Square Hospitality Group, were on CNBC to discuss the company’s successful public debut.
Did You Expect This Kind Of Response?
"We didn’t have any dreams that today would ever come," Meyer said. "We wanted to open a hot dog cart to help a park at Madison Square park and when you put a great product with amazing people with the kinds of heart that you have felt here in the floor, these people are doing it and its our staff that this day is for, we are so excited."
Do 63 Restaurants Justify The Valuation?
"We are grateful for the people who love our brand,. We have always tried to offer great value and for whatever reason that people love standing in line for these burgers and maybe that translates to the stock, too," Meyer replied.
Is Growth Going To Come From New Store Openings?
"It is largely about new stores," Garutti said. "I think, what's happening is there is a seismic shift in how people are eating today. People are trading up from QSR [quick service restaurants], I know my kids and my kid's generation, they are not eating fast food, they want more, they expect more and we have been a part of leading that for these 10 years."
"I think that people who understand this story, people who are now part of this story understand we have just gotten started and this is a growth story for decades to come."
Image credit: M01229, Wikimedia
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