I used Illustrator for this one.

First, type in the text and play with tracking until the characters get closer to each other or until you get the desired spacing between the characters. Then COPY (Ctrl+C) and Paste in Front (Ctrl+F) the text. Open the layer where the texts are in and then hide the top copy of text. Select the bottom text. Choose the desired color for your background and stroke. Set the stroke weight to atleast 8pt. Add a drop shadow and play with the settings. The Drop Shadow setting for this one are: Mode-Multiply, Opacity-100%, X Offset-5px, Y Offset-4px, Blur-0px, Color-#000000. Now unhide the text on top and select it. Create outline the text. Go to Type>Create Outlines (Shift+Ctrl+O) so you could add gradient or texture or what have you on the text. And there you have it.

Note: For the stroke, you might as well play with the cap and joint of your stroke. Do not forget to Create outline the bottom text too.

I hope it helps.