Truce!! Shake Shack Reaches Agreement With Activist Investor Engaged Capital

Shake Shack Inc SHAK has entered a cooperation agreement with Engaged Capital, LLC, one of its largest stockholders.
As part of the Cooperation Agreement, Shake Shack has appointed Jeffrey D. Lawrence to its Board as an independent director, effective immediately.
The company will also work with Engaged Capital to identify an additional mutually agreed upon independent director with restaurant operations experience.
Lawrence, former CFO of Domino's Pizza Inc DPZ, brings financial management, business operations, and transformation expertise.
Shake Shack has agreed to retain a consulting firm to support its ongoing operational initiatives to improve restaurant execution, cost structure and profitability.
Danny Meyer and certain of his affiliates have agreed to step down their director designation rights over time.
Shake Shack shares have lost almost 50% of their value from an early-2021 high, even after gaining more than 50% this year, amid inflation pressures and compressed margins.
Engaged Capital has agreed to support the Board's full slate of directors at the 2023 Annual Meeting of Stockholders.
Price Action: SHAK shares are trading lower by 0.41% at $70.01 in premarket on the last check Tuesday.