By Mike Murphy
Burger chain Shake Shack inc. is reportedly facing a proxy fight from an activist investor seeking changes to boost the company’s stock price.
The Journal reported that Engaged has been in talks with Shake Shack for more than six months, and wants the company to hire a consulting company to improve efficiency, eyeing a way to double its profitability within two years. Engaged also reportedly seeks changes to Shake Shack’s supervoting share structure.
Earlier this month, Shake Shack reported a narrower-than-expected first-quarter loss and sales that rose more than had been expected.
Shake Shack shares have rallied 57% year to date and 41% over the past 12 months, but are still less than half of their all-time high price in early 2021.