Shake Shack (NYSE: SHAK) insiders bought stock in May, signaling confidence in the company’s long-term outlook. Insiders included several directors and the CEO who, along with other noteworthy insiders, own more than 8.5% of the shares. These insiders are buying amid a stock price meltdown that may not be over.
The primary culprit for this meltdown is rising beef prices and the impact on margin, and this headwind is far from subsiding. Already at record prices, beef costs are forecast to rise by another 5% to 10% over the next year and may remain high well into 2028. Herd size and demand, underpinned by the global protein craze, are the root cause, and the herd isn’t expected to see meaningful recovery until late in 2027. Who knows how long the protein craze will run?
