Shake Shack investors dumped the stock today following the company said its second quarter results were hurt by way of a insufficient lunchtime traffic from workers in offices.
Why it matters: The makeup of the workforce who home based has hit an equilibrium point in the U.S. Companies influenced by a higher mixture of office worker activity will need to adjust their strategies.
Details: Weekday lunch and dinner traffic in Midtown NEW YORK, where in fact the chain originated, continues to be on average a lot more than 40% below 2019 levels, CFO Katherine Fogertey noted with this morning’s earnings call.
- Even though other urban markets like Boston and Washington D.C. saw same-store sales grow by a lot more than 25% last quarter, “that recovery could have been even stronger had [things like] go back to office, incrementally improved,” she said.
- Shake Shack’s shares finished down 6.3% Thursday from yesterday’s close.
What things to watch: Workers in NEW YORK intend to slice the time they spend in offices by half, while those in SAN FRANCISCO BAY AREA intend to reduce by way of a bit more than half.