In a recent filing with the Securities and Exchange Commission, Shake Shack revealed it would close nine underperforming stores in California, Ohio, and Texas. One of the reasons given is that the locations are thought to be "cannibalizing sales" from other locations. The remaining 527 company-owned restaurants are unaffected by the closures, and the closures do not affect the company's plans to open new stores in the future.
"Shake Shack is in a period of considerable growth with a plan to open 40 new company-owned Shacks and 40 more licensed Shacks this year," Shake Shack CEO Rob Lynch said in a statement. "We're committed to sustainable growth and providing the best possible experience for our guests. After careful consideration, we've made the tough decision to close a small group of Shacks due to various factors, including underperformance. We remain focused on supporting our team members through this transition and look forward to continuing our growth, opening many more locations across the country."
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