Shake Shack’s Shares Rise After Activist Investor Takes Stake
- The firm owns a 6.6% stake in the popular burger chain
- Analysts say the company is already on the right track
Food from a Shake Shack Inc. restaurant in Lexington, Kentucky.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Shake Shack Inc. shares rose as much as 8.9% Monday on news that activist investor Engaged Capital has taken a stake in the burger chain and is pushing for changes.
The firm owns about 6.6% of the company and is planning a proxy fight seeking three board seats, among other actions to help boost the stock price. Engaged’s campaign follows a period of eroded sales growth and margins as the chain grappled with lower traffic and elevated costs during the pandemic.