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Smashburger eyes IPO to fund growth

  • Smashburger appears to be setting itself up to have an IPO within a year or two, according to reports.
  • The premium hamburger chain is looking for sources of capital to fund national expansion.
  • The emergence of Five Guys and Smashburger in some markets has has an impact on the local outlets of Wendy's (WEN -0.1%), Hardees, Burger King Worldwide (BKW +0.6%), and McDonald's (MCD -0.4%).
Comments (12)
  • jw4golf
    , contributor
    Comments (340) | Send Message
     
    you seem to be missing supporting data for having an impact
    30 Aug 2013, 10:48 AM Reply Like
  • Dr Fred
    , contributor
    Comments (71) | Send Message
     
    I know nothing of Smashburger, but I have tried Five Guys on two occasions. To my mind they are the bottom rung of the industry. The French fries portions, complete with potato skins, are enormous and greasy. The numerous variations of burgers and condiments make for slow ordering, confusion, and require large staffs. The stores themselves are stark and gaudy. In five yrs. we will be saying "Five Guys who?"
    30 Aug 2013, 10:50 AM Reply Like
  • User 6707651
    , contributor
    Comments (983) | Send Message
     
    enormous staffs? Our local five guys usually has a manager and a couple of people working the grills- to me that's a fraction of other fast food places, as far as the food quality, you're in the minority- Zagat, Urbanspoon, and Yelp as well as the local papers here all give five guys great reviews (they usually land somewhere in the top local burgers list)
    30 Aug 2013, 11:24 AM Reply Like
  • PendragonY
    , contributor
    Comments (5405) | Send Message
     
    I have eaten at several Five Guys (including the original place), and you are way off base. The staff is pretty small, 4 to 5 people is the usual (and some times even less). The menu isn't any where near as complex as you make out and the wait times are reasonable. The wait times are reasonable. And the fries are to die for. We most often take the food home rather than eat there, and the whole order of fries rarely makes it home (often as much as half the fries are gone before we get them home).
    30 Aug 2013, 11:55 AM Reply Like
  • MJODellDC
    , contributor
    Comments (2) | Send Message
     
    @ Fred: I disagree. Five Guys is very popular in areas where I've traveled, especially among young people. Yes, the ordering process is a bit cumbersome, but you get a customized product that you create. Most customers either know it will take a bit of time or quickly learn. In five years, you'll be saying, "Wish I had invested 5 years ago."
    30 Aug 2013, 12:10 PM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    Where is "here?"

     

    Nearby big city, or state will do.

     

    Thanks.

     

    -rwm
    30 Aug 2013, 08:16 PM Reply Like
  • Thinking Man
    , contributor
    Comments (10) | Send Message
     
    I'd like to see supporting statistics. Five Guys is more of a premium priced affair. Their options, as well as their ordering and delivery process, run counter to the "fast food" concepts of Wendys, Burger King, McDonalds, Hardees and others. Their cost, for their smallest burger, fries and a fountain drink, is over $9, which far exceeds the top of the line burger combo at the aforementioned establishments. If Smashburger is a premium priced establishment it might be competition for Five Guys but it is not likely to draw much of the market from the "fast food" providers.
    30 Aug 2013, 11:09 AM Reply Like
  • RWMostow
    , contributor
    Comments (1324) | Send Message
     
    Wow!

     

    As a followup, I went on line and discovered we have 3 Five Guys within 6 miles of my home. Shows what happens when an old man (me) keeps his eyes on the road.

     

    Should have been a tourist and looked out the window. :)

     

    I will check them out.

     

    -rwm
    30 Aug 2013, 08:22 PM Reply Like
  • jamesmart7379
    , contributor
    Comments (4) | Send Message
     
    Smashburger is great. Better than 5 Guys, tastier burgers. Angus beef, sweet-potato fries. I first tried on in San Diego three or four years ago, glad they finally found their way to my neck of the woods in Tucson, Az.
    31 Aug 2013, 01:18 AM Reply Like
  • PendragonY
    , contributor
    Comments (5405) | Send Message
     
    I have eaten at both. While the burgers are slightly better at Smashburger, the sizes are too small and the prices too high.

     

    And the best burgers in San Diego are at Wimpies!
    31 Aug 2013, 09:38 AM Reply Like
  • fedinvest
    , contributor
    Comments (192) | Send Message
     
    What amazes me is the continued proliferation of burger purveyors. I've tried Five Guys and Smashburger and while I like the product I don't know how these various entries to the burger universe can differentiate themselves. In the Chicago area in addition to the recent entry of Five Guys and Smashburger we have Culvers, expansion of old standby's like White Castle, Steak N Shake, and of course McDonalds, Burger King and Wendy's, and I'm probably forgetting a few others. It seems at some point there must be a limit to Americans love of burgers. For me it's hard to decide if any of these newcomers have investor appeal. Long McDonalds.
    31 Aug 2013, 02:02 PM Reply Like
  • Dr Fred
    , contributor
    Comments (71) | Send Message
     
    @6707651 I said "large staffs" not "enormous staffs". There is a difference.
    To the rest of you folks, I guess difference of opinion is what makes horse races. My all time favorites are White Castle- sorry to say there are none here in FL.
    31 Aug 2013, 04:42 PM Reply Like
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