According to a Bloomberg report published on Wednesday, Starboard Value Chief Executive Officer Jeff Smith said on Bloomberg TV that his firm has built a new position in the company.

  • The stake is worth several hundred million dollars, Smith said.
  • Earlier on Wednesday, Shake Shack reported that its second-quarter (Q2) total revenue rose 17.2% year-over-year to $417.6 million, helped by more customers visiting existing restaurants and a busy period of new store openings.
  • Chief Executive Officer Rob Lynch highlighted a “challenging” operating environment.

Shares of Shake Shack Inc. (SHAK) rallied sharply on Wednesday, climbing as much as 12%, after activist investor Starboard Value disclosed a substantial new stake in the company.

The stock is now on track to clock its best day since April 2025, if gains hold.

Starboard Value Takes New Position

Starboard Value Chief Executive Officer Jeff Smith said on Bloomberg TV that his firm has built a new position in the company, according to a Bloomberg report published on Wednesday. The stake is worth several hundred million dollars, Smith said, indicating that Starboard may now be one of the burger chain’s largest shareholders.

The news arrived hours after Shake Shack released its second-quarter results and rapidly propelled the shares higher.

Second-Quarter Results

Earlier on Wednesday, Shake Shack reported that its second-quarter (Q2) total revenue rose 17.2% year-over-year to $417.6 million, helped by more customers visiting existing restaurants and a busy period of new store openings. Wall Street, on average, was expecting the company to report revenue of $416.9 million.

The company opened a record 16 company-operated Shacks and 11 licensed locations in the quarter, bringing the system-wide total to 703. Net income attributable to Shake Shack fell from a year ago because of high costs, particularly for beef. However, adjusted pro forma earnings per share came in at $0.43, beating Wall Street estimates of $0.30.

Chief Executive Officer Rob Lynch highlighted a “challenging” operating environment.

“Our second-quarter results reflect a business that continues to execute across sales, development, and profitability despite navigating one of the most challenging cost environments we have faced in many years. … I am encouraged by the resilience of the Shake Shack model and confident in our ability to deliver on our long-term plan,” Lynch said.

How Did SHAK Retail Traders React?

On Stocktwits, retail sentiment around SHAK stock jumped from ‘bearish’ to ‘bullish’ over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.

A Stocktwits user termed the stock undervalued and cheered Smith’s investment.

Another user cheered the food offered by the chain and voiced hopes for a rally to $100.

SHAK stock has fallen 10% year-to-date. 

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