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Benzinga
Benzinga
Business
Triveni Kothapalli

Is Shake Shack's Expansion Dream A Recipe For Disaster?

Tokyo,,Japan,-,March,10,,2023:,A,Shake,Shack,Restaurant

Shake Shack Inc. (NYSE:SHAK) faces mounting margin pressure and slowing same-store sales growth as rising beef costs and aggressive pricing in the fast-casual sector challenge its expansion ambitions.

Bank of America downgraded Shake Shack to Underperform from Neutral and cut its price forecast to $86 from $148, implying an 11% downside to the current share price of $96.79.

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