Initial thoughts on Shack-onomics

While living in the city, Shake Shack wasn't my thing. The shack in Madison Sq Park had obscenely long lines, for what seemed like a mediocre burger. Many years pass, a jersey location opens and I give it another chance. Greatly improved. Scalability. And a fuck-yeah-awesome shake. Becoming a shack-fan, I obviously had to look at the S-1.

Interesting facts and extrapolations:

1. Tax rate is really low, too low

2. Growth seems solid

3. Wanted to see more of a quarterly breakdown of the income statement

4. Long-term company owned stores to grow to 450. (This could suggest a long-term revenue growth towards $1B, ~10x current revenue.)

5. Licensing revenue growing fast.

At ~$15/share, the ipo is interesting. If it doesnt jump too much, or in times of weakness, I'll be interested.