Shake Shack stock rises despite pullback from lower-income consumers

Shares of Shake Shack popped on Tuesday even amid the company seeing a decrease in spending from lower-income customers.

Video transcript

DAVE BRIGGS: My play is Shake Shack, of course. SHAK a trending ticker at Yahoo Finance right now. Executives say they're experiencing a slowdown in sales among lower income consumers and expect to lose some of those diners if the economy slows further. The CEO there, Randy Garutti, saying at a conference today, the company hopes higher income customers trading down from casual dining and more expensive restaurants.

Shake Shack shares actually jumping quite nicely today on the news. As you can see, they're up more than 2%. Shares down, though, more than 30% year to date. Always an interesting look at the economy when you hear from these restaurants, Jared. We first heard that with Walmart after their earnings report, that the biggest market share improvement was among those above $100,000 trading down to Walmart, and now Shake Shack seeing the same.

JARED BLIKRE: Yeah, an interesting stock here. I'm looking at the YFi Interactive on a max chart basis. You can see, this almost looks like a biotech chart, where you're watching them clear FDA hurdles. But nevertheless, they got a big bump into early 2021, as a lot of stocks did. And like many other stocks, they gave just about all of that back. So best of luck to Danny Meyer and crew. I'll leave it there.