Shake Shack up after report activist investor Starboard built new stake
SHAK•Quarterly results also beat estimates
Earlier on Wednesday, the burger chain reported quarterly revenue rose 7.2% to $417.6 million.
Q2 adjusted EPS of 43 cents beat estimates of 31 cents, according to data compiled by LSEG.
As of the last close, SHAK was down 18.4% year to date.
Shares rise after Starboard stake report
- Shares of Shake Shack SHAK.N were up about 10% at $72.82.
- Activist investor Starboard Value built a new stake in the company, a source familiar with the matter told Reuters.
- Bloomberg News first reported the news earlier on Wednesday, citing Starboard CEO Jeff Smith who said the hedge fund has a position of several hundred million dollars in Shake Shack.
- Starboard and Shake Shack did not immediately respond to a Reuters request for comment.
