Shake Shack Shares Swell 119% After 10 IPOs Raise $1.2 Billion

Shake Shack stock more than doubled its initial public offering value Friday as investors feasted on the fast-casual hamburger chain.

Shares rose 119% to 45.90, after the IPO priced 5 million shares at 21, above the upwardly revised range of 17 to 19.

Shake Shack (SHAK) raised $105 million, one of 10 IPOs that priced last week, raising a total of $1.2 billion in proceeds.

"Shake Shack's seemingly immediate meteoric rise should come as no surprise, as investors have proved to have substantial appetites when it comes to recent restaurant IPOs," wrote IPO research firm Ipreo.

That was the case with fast-casual restaurant Habit Restaurants (HABT) which soared 120% in its Nov. 20 debut. The IPO priced at 18, raising $90 million. The stock hit a high of 44.20 on Dec. 12, but has since fallen to 33.

Another is El Pollo Loco (LOCO), which popped 60% on its July 25 debut. It priced at 15 and quickly sprinted to 41.70. It closed Friday at 25.73. Others include Zoe's Kitchen (ZOES), trading now at double its April IPO price of 15.

Fast-casual chains are booming,, with total annual sales growing at double-digit rates, according to research firm Technomic. Sales in this category topped $38.5 billion in 2014. The leader in the field is Chipotle Mexican Grill (CMG).

The fast-casual restaurant trend is taking a bite out of McDonald's (MCD). On Wednesday the burger giant said CEO Don Thompson is stepping down as it struggles to turn around a global sales slump.

Shake Shack serves premium burgers, dogs, fries, shakes, frozen custard, beer and wine. It started out as a cart in 2001 in New York City's Madison Square Park. The food was a hit, receiving widespread media attention and lines of customers.

The first official Shake Shack eatery opened in 2004. There are now 63 locations, of which 27 are licensed in offshore markets. Twenty operate in the Middle East. Shake Shack operates in 10 Eastern U.S. states and Washington, D.C. Fifteen are in New York.

For the 39 weeks ended Sept. 24, Shake Shack reported sales of $83.8 million, up 41% from the year-earlier period. Net income fell 20% to $3.54 million.

Q3 revenue rose 40% vs. a year earlier to $31.8 million. Income from operations was $759,000.

The largest competitor in the fast-casual burger space is Five Guys, based in Alexandria, Va., with more than 1,000 shops and sales of about $1 billion, noted Darren Tristano of Technomic. Denver-based Smashburger is next with about 300 outlets.

Another hot IPO Friday was Spark Therapeutics (ONCE), which popped 117% on its debut. The biotech develops gene therapy treatments for rare blinding conditions, hematologic disorders and neurodegenerative diseases.

Eleven IPOs are scheduled for the week of Feb. 2.