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Shake Shack CEO Comments At Piper Jaffray Conference Drive Shares Lower

SHAK

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.

Related Links:

Analyst Says Long-Term Investors In Shake Shack Should Continue Buying Shares

Wedbush Upgrades Shake Shack Shares, Sees 16% Upside From Here