Shake Shack’s been the talk of the fast-casual market, but its promise of rapid growth has been hindered by poor real estate skills.
The burger joint doesn’t have the management or info to snatch up prime locations, and as a result put up new locations in areas with low out-of-home food spending—slowing its success, according to a Bloomberg Intelligence analysis.
“Everyone has heard it—location, location, location; it’s critical, especially when a company is growing as quickly as they are,” says Bloomberg Intelligence analyst Michael Halen, who led the study.
The poor choices have seen shares tumble 41% in the past 12 months as sales gains slow down. Shares fell 0.6% to $36.48 on Tuesday. [Bloomberg]
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