Shake Shack Inc. (NYSE: SHAK) saw its shares drop on Thursday on word of a secondary offering. The company filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. However, the company is not offering up the shares and will not receive the proceeds from this offering.

An approximate total of 26.2 million shares are being offered in the filing. At Wednesday’s closing price of $48.48 the offering is valued up to $1.27 billion.

Looking at the trading range, these selling shareholders are looking to get out somewhere around 20% above the post IPO low. At the same time this is where the share were trading in the days immediately after the IPO.

Shake Shack is a fast-casual restaurant featuring premium hamburgers and other foods. Following the IPO, the company has two classes of stock: Class A stock that will trade on the New York Stock Exchange under the ticker symbol SHAK and Class B stock that will be held by a group called Continuing SSE Equity Owners, which holds 68.3% of the voting power in the company.

The company had 53 locations in the United States and internationally as of the end of September 2014, with 39-week revenues of $83.76 million and net income of $3.55 million. On the basis of 1.25 million shares outstanding, diluted earnings per share totaled $2.83.

Shares of Shake Shack were down 6.5% at $45.31 on Thursday afternoon. The stock has a consensus analyst price target of $45.60 and a 52-week trading range of $38.64 to $96.75.

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