Listening to their fans, Shake Shack have announced their plans to open one of their famous burger and frozen custards restaurants in California.
Randy Garutti, Shake Shack Inc. CEO, said in a recent statement that they have received requests from their fans situated on the West Coast for quite a while and have decided to open Shake Shack (SHAK) in California, also adding “at long last, we’re happy to say Shake Shack Los Angeles is on its way”. The burger restaurant CEO also said that LA is a really great city with a very unique culture and that the company is excited about “being part of the community.”
A “road-side” stand model is the inspiration behind the new restaurant; this will include a big patio with dedicated parking. The company is also going green with the implementation of energy-efficient equipment and lighting and they will also make use of recycled and sustainable materials.
Shake Shack has humble beginnings as a hot dog stand in Madison Square Garden, New York City and they got the opportunity in 2004 to open a more permanent stand in the same location. Shake Shack now boasts a wide range of locations in Washington DC, Las Vegas, New York, Maryland, Massachusetts, Chicago as well as a range of international locations.
The company has also expressed plans to open a minimum of 10 new domestic Shacks each year that are company operated. There plans will start rolling out in the current fiscal year.
Despite the good news about Shake Shack California, share prices dropped 5.4% to trade at $60.21 a share after the announcement. This came in response to comments by analyst Stifel Nicolaus who reported a warning that the stock price is overheated.
MT4 Chart: Shake Shack
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