Shake-Up Alert: 40 Companies Facing Activist Pressure

Page 10 of 31

22. Engaged Capital at Shake Shack Inc. (NYSE:SHAK)

Stock Return: 2.78%

S&P 500 Return: 30.44%

Investment date: 14/05/2023

Number of hedge funds holding stakes: 34

Shake Shack Inc. (NYSE:SHAK) is the proprietor, manager, and permit holder for Shake Shack eateries, which serve hamburgers, chicken, hot dogs, crinkle-cut fries, milkshakes, frozen custard, alcoholic beverages, and other items.

Activist hedge fund Engaged Capital amassed a 6.6% stake in the high-end Burger King and soon started pushing for three board seats. The hedge fund believes that Shake Shack Inc. (NYSE:SHAK) should get rid of its staggered board, having also reiterated that it needs to double its profitability. Amid the activist campaign, the stock is up by about 19.12% yearly.

As of the end of the first quarter, 34 hedge funds tracked by Insider Monkey held stakes in Shake Shack Inc. (NYSE:SHAK), up from 28 as of 2023.

Page 10 of 31