Chipotle's 'Better Burger' Trademark Spooks Shake Shack Investors
Shake Shack Inc (NYSE: SHAK) shares sold off more than $1.00 -- a decline that's noticeable on the stock's chart after 3:30pm -- amid perceived competition from Chipotle Mexican Grill, Inc. (NYSE: CMG).
Near Wednesday's close, Chipotle filed a trademark for a product named "Better Burger." The filing indicated it was made on March 11, 2016 and will be used for restaurant services, take out, catering and bar services.
Chipotle, which has made its brand name from an offering of burritos and tacos for more than 20 years, has dabbled in other food types before. In 2011, Chipotle opened the Asian fast-casual concept restaurant named ShopHouse Southeast Asian Kitchen; there are now locations around D.C. and California.
Of note, Shake Shack shares sold off despite a lack of move from other fast-casual burger themed names. Habit Restaurants Inc (NASDAQ: HABT) closed the day up 6.6 percent, sustaining the morning move it made on Tuesday.
Calls to Chipotle were not immediately returned.
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