The sizzling debut follows the successful listing two months ago of Habit Restaurants Inc , highlighting strong appetite for shares of companies serving up premium burgers. Shake Shack shares were $48.31 in afternoon trade on the New York Stock Exchange, soaring above their offer price of $21 and raising questions about whether the stock was overvalued. Based on 2013 earnings, the company that grew out of a hotdog cart in New York's Madison Square Park is trading at an eye-popping price-to-earnings ratio of about 325, with each restaurant valued at about $27 million. "Seems like a nosebleed valuation," said Bob Goldin, an executive vice president at restaurant consultancy Technomic Inc, adding that Shake Shack would need "explosive growth for years and years" to justify its stock price.
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