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 Wall Street Journal reported Sunday that Engaged Capital, which has a roughly 6.6% stake in Shake Shack SHAK, -1.93%, is seeking three board seats and is planning to run a proxy fight.
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.