Shake Shack Stock Plunges After Burger Chain Unveils Litany of Challenges -- WSJ

Dow Jones

May 07

By Heather Haddon

Investor confidence in Shake Shack is, er, shaken.

Shares in the burger chain plummeted after the company posted disappointing quarterly sales and earnings, growing beef and development costs and uneven footfall.

Many Shake Shack locations are in high-traffic tourist destinations, which have seen fewer visitors as America loses its appeal as a global destination. The company said war in the Middle East hurt operations of its licensed businesses there.

The biggest burger players are slugging it out in a rough patch for the fast food industry, with consumers under pressure from rising gas prices. Shares of McDonald's, which has been heavily promoting value meals, floated higher today after it reported sales and profits that beat expectations.

Shake Shack said it expects to keep opening new locations, and believes its sales will grow for the rest of the year. Discounts for fries, shakes and sodas through its loyalty program are helping it be competitive, it said.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

May 07, 2026 10:20 ET (14:20 GMT)

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The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 07, 2026 10:20 ET (14:20 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4504","symbol_name":"桥水持仓","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2633125986","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2633125986","pubTimestamp":1778163600,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Investor confidence in Shake Shack is, er, shaken.Shares in the burger chain plummeted after the company posted disappointing quarterly sales and earnings, growing beef and development costs and uneven footfall.Many Shake Shack locations are in high-traffic tourist destinations, which have seen fewer visitors as America loses its appeal as a global destination. 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The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n\n\n  (END) Dow Jones Newswires\n\n\n  May 07, 2026 10:20 ET (14:20 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"}}}