Shake Shack Drops in Late Trading With Guest Traffic Slowing Again
- Burger chain down 11% even though total same-store sales beat
- Expansion plans are curbing traffic at existing locations: CFO
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Shake Shack Inc. dropped the most in more than two years as its aggressive expansion plans crimp foot traffic in existing locations.
Traffic slipped 2.6 percent at the burger chain last quarter, even though total same-store sales beat estimates. Guest visits had already fallen 4.2 percent in the first three months of the year at the New York-based burger chain, spooking investors who had hoped for a turnaround.