Shake Shack Has Limits to Raising Prices
It is easy to dismiss Shake Shack's (NYSE: SHAK) poor quarterly results, which saw same-store sales (comps) drop 12.8%. Certainly, the coronavirus pandemic played a part with March's comps down 29%. In mid-March, management halted dine-in seating, although restaurants accepted to-go orders. As April dragged on, weekly sales slowly improved, but comps still fell 45% to 64% in the last three weeks of the month.
The coronavirus will eventually pass, and governments are lifting stay-at-home orders. However, there are underlying business issues that suggest Shake Shack's results may not recover as quickly as it hopes.
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Source Fool.com
