Skip to main content

Market Overview

Shake Shack CEO: Restaurants Of All Sizes Hurting

Shake Shack CEO: Restaurants Of All Sizes Hurting

Shake Shack Inc (NYSE: SHAK) said this week same-store sales were down 29% in March as restaurants of all shapes and sizes are hurting in the current environment, CEO Randy Garutti said Friday on CNBC.

Everyone Is Impacted

All restaurants ranging from small "mom-and-pop" restaurants to large independents and even public companies like Shake Shack are impacted by the coronavirus,.

During the difficult time, Garutti's message to all employees is simple: "lead with hope, and act on reality." The unfortunate reality is the company has to act in complete opposition to its original core purpose of helping people gather together.

The company is doing all it can to remain relevant, including converting itself to a complete makeshift drive-through restaurant, even though not a single chain has a drive-through option, he said.

Shake Shack can continue operating at reduced sales because of its shift in strategy.

Shackburger Kit

Shake Shack is collaborating with Goldbelly to sell a Shackburger kit, which includes all the key components to replicate a burger at home. This was an easy decision to make and credit is given to the "entrepreneurial team," Garutti said.

Balance Sheet

Shake Shack drew $50 million from its revolving credit facility on March 24, which marks a reversal from a history free of debt since its IPO five years ago. If needed, the company has access to incremental liquidity sources.

A large portion of Shake Shack's spending is dedicated to opening new stores and management planned to exceed last year's 73 new stores this year. Putting these plans on hold will help preserve cash for the time being.

Related Links:

Chipotle CEO Talks Food Innovation, Bonuses For Workers And More

GrubHub CEO: Independent Restaurants Are 'Really Hurting'


Related Articles (SHAK)

View Comments and Join the Discussion!

Posted-In: CNBC Coronavirus hamburgersNews Retail Sales Restaurants Media General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at