Is Shake Shack Cannibalizing Itself?

Is Shake Shack Cannibalizing Itself?

Shake Shack Inc (NYSE: SHAK) shares sank 5.5% last week after the company reported another same-store sales decline. The better-burger chain said comparable sales slipped 1.8%, the second straight slide in comps, on a 4.3% decline in traffic.

While the comparable base still makes up less than half of its company-owned stores, the market punished Shake Shack for the result as some analysts believed the young chain was beginning to cannibalize itself.

Shake Shack's new hot chicken sandwich. Image source: Shake Shack

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Source: Fool.com