Shake Shack Falls as Fast-Food Slump Weighs on Sales Growth
- Comparable-store sales rose 4.5 percent, trailing estimates
- U.S. restaurant industry is plagued with lower spending
A Shake Shack restaurant in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Shake Shack Inc. tumbled the most in five months after same-store sales missed analysts’ estimates, signaling that the rapidly expanding burger chain isn’t immune to a slump that’s spreading through the fast-food industry.
Sales at locations open at least 24 months rose 4.5 percent in the second quarter, the New York-based company said in a statement on Wednesday. That marks a slowdown from the 9.9 percent gain the chain posted in the prior quarter and trails the 5.4 percent increase analysts had expected, according to Consensus Metrix.