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AP/Mark Kennedy
Shake Shack: More than just burgers, at least for a limited time.
TASTY TREAT

On the eve of Shake Shack’s IPO, some mouthwatering stats for restaurant investors

By Shelly Banjo

Reporter

You know those share price pops that often occur on a company ’s first day of trading? Restaurants have learned how to supersize them.

Since 2012, initial public offerings of restaurant stocks have returned an average 48% on their first day of trading, compared with just 15.3% across IPOs across all sectors, according to research firm Ipreo. Investors hungrily awaiting Shake Shack’s public offering are no doubt hoping to see this translate into a windfall when the burger chain goes public. (Its IPO is scheduled for Jan. 30, and The Wall Street Journal (paywall)  reports that the shares have just priced at $21 apiece.)

Of the 11 restaurant IPOs since 2012, including Dave & Buster’s, Potbelly, and Noodles & Co., none has ended its opening session in the red.

And many have kept up the momentum since: Shares of these companies are still trading 54.7% above their offer prices, compared with 48.2% across all IPOs, according to Ipreo.

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