Operations

Former Domino's CFO joins Shake Shack's board of directors

Provided

May 16, 2023

Shake Shack Inc. has entered a cooperation agreement with Engaged Capital LLC, an investment adviser, which is also one of the restaurant's largest stockholders, to appoint Shiftkey CFO Jeffrey D. Lawrence, who formerly served as Domino's Pizza CFO, to Shake Shack's board. The company will also work with Engaged Capital to identify an additional mutually agreed upon independent director to join the board.

"We appreciate our constructive dialogue with Engaged Capital and believe the appointment of Jeff and another new director will benefit our Company and stockholders," Shake Shack CEO Randy Garutti said in a company press release. "We are executing our strategic plan and share Engaged Capital's view that Shake Shack can drive additional profit growth. We look forward to continuing to increase stockholder value."

Shake Shack's Chairman Danny Meyer said Lawrence was chosen after an extensive search that began in January 2023.

"Given his expertise in scaled operations, digital and international expansion, as well as his strong financial leadership experience, we believe he will be able to make immediate and impactful contributions to Shake Shack," he said in a company press release. "I am also pleased that we reached an agreement with Engaged Capital, one of our largest stockholders, that I believe will further our mutual goal of enhancing stockholder value."

Shake Shack has also agreed to retain a consulting firm to support its operational initiatives of improving restaurant execution, cost structure and profitability. Meyer and certain of his affiliates have agreed to step down their director designation rights over time.

"We are pleased to have aligned with the Board on a constructive path forward to helping Shake Shack achieve its potential," Glenn W. Welling,Engaged Capital's founder and chief investment officer, said in the release. "Due to its strong brand, elevated product and uplifting guest experience, Shake Shack has a unique opportunity for substantial profitable growth. Jeff and an additional director with expertise successfully scaling profitable restaurant concepts will be tremendous additions to the Board as the company continues to improve the guest experience, Shack and company profitability and returns on capital."

Shake Shack has more than 450 locations systemwide.