Shake Shack Stockholders to Sell at Least 4 Million Shares

Danny Meyer and private-equity firm Leonard Green & Partners are among the Shake Shack Inc. stockholders that could see some proceeds from a secondary stock offering announced Monday.

The burger chain said selling stockholders will offer at least 4 million shares.

In after-hours trading, the stock recently traded at $52.50, down 4.2%, but the shares are still far above their January initial public offering price of $21. The stock rose 119% on its first day of trading.

The rapidly expanding Shake Shack is part of a wave of newer chains like Habit Restaurants Inc., Smashburger and Five Guys threatening fast-food icons like McDonald's Corp.

The company has 71 locations, including 42 in the U.S.

In May, Shake Shack raised its revenue guidance for the year as sales grew a better-than-expected 56% in the quarter ended April 1.

Another Shake Shack private-equity backer, Alliance Consumer Growth, and Mr. Meyer's Union Square Hospitality Group recently invested in California chain Tender Greens, which offers items such as marinated steak and grilled Thai octopus salad in a fast-casual format.

Write to Josh Beckerman at [e-mail]

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