Shake Shack Inc (NYSE: SHAK) CEO and
Director, Randy Garutti, answered questions at the Piper Jaffray Consumer Conference on Wednesday, while Shake Shack shares fell 2
percent.
Here are some of the notable comments.
The Ever-Changing Restaurant Industry
Garutti highlighted how he's seeing a “massive shift” in the casual food restaurant industry and is constantly looking for ways
to have Shake Shack evolve to the constant changes. Specifically, he highlighted the launch of the Shake Shack app, which allows
people to order from their phones and never wait in line as part of the shift to a digital
industry trend.
Burgers For Breakfast?
Garutti wouldn't rule out opening Shake Shack for breakfast at some of its more popular locations. Shake Shack is also
regionally testing a “Hot Chicken” sandwich item in six of its locations. Overall, he noted Shake Shack isn't looking to
overcomplicate its menu.
Menu Prices Aren't Going To Be Any Cheaper
Management is not looking to offer any major discounts or offers in the near future.
Costs Are Increasing
Garutti cited rising beef prices and employee costs as reasons behind lower margins. He highlighted how it has been challenging
to find qualified employees for the restaurant. However, he did note that Shake Shack still looks to pay employees above minimum
wage, and is actually doing well in states where they pay employees the most money, like New York, Washington and Chicago.
Overall, Garutti is excited about the restaurant's future, as he continues to wake up every day with a relentless attitude
focused on making “Shake Shack better today than it was yesterday,” he said.
The entire presentation is available on Shake Shack's website.
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