Shake Shack's decision to close nine underperforming locations is aimed at improving overall performance and profitability while still pursuing new restaurant openings in the area.
The closures are deemed necessary due to shifts in customer patterns, with the company anticipating pretax charges of $28 to $30 million as a result.
Despite the impact of these restaurant closures, Shake Shack's growth strategy remains intact, reaffirming its commitment to planned openings without altering full-year guidance.
The company is taking steps to support affected employees, with management offered positions at other locations and hourly staff receiving pay or rehire options.
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