Shake Shack announced today the decision to close nine of its company-owned restaurants located in California, Texas, and Ohio. The burger chain cited underperformance and, in some cases, the negative impact on neighboring Shake Shack locations as key reasons for the closures.
One of the locations set to be closed is in Oakland, Calif., a community stricken with crime and disorder.
In a statement released Tuesday, Shake Shack explained that the closures are part of a strategic effort to optimize its footprint in these states and to enhance overall profitable growth. The company’s assessment revealed that some of these locations were adversely affected by changes in their trade areas, which also led to diminished sales at nearby stores.
Despite the closures, Shake Shack reaffirmed its financial guidance for the year and emphasized its commitment to future expansion. The company’s plans for new store openings remain intact as it continues to focus on consolidating and strengthening its presence in key markets.