(Reuters) -Activist investor Engaged Capital is planning a proxy combat for 3 board seats at high-end burger chain Shake Shack (NYSE:), the Wall Avenue Journal reported on Sunday, citing folks aware of the matter.
Together with swaps, Engaged has a roughly 6.6% stake within the chain, the report mentioned.
The U.S.-based shareholder activist has decided methods to double the corporate’s profitability inside two years and believes the burger chain ought to do away with its staggered board, which signifies that not all administrators are up for election on the identical time, in keeping with the report.
“Our inventory is up greater than 50% year-to-date and we’re properly positioned to proceed enhancing worth for shareholders,” a spokesperson for Shake Shack mentioned in a press release despatched to Reuters.
“We’re executing our strategic plan and making substantial operational and monetary progress.”
Engaged has been in talks with the corporate’s administration for over six months and despatched a letter to the board in March detailing its proposal for brand new administrators and different modifications to assist increase the restaurant chain’s lagging inventory worth with out an settlement, the folks advised WSJ.
Engaged Capital didn’t reply to a request for remark.