Shake Shack's new Chick'n Bites are eating into profits and could be scrapped

The new menu item takes time to prepare and fueled a 35% spike in the fast-food chain's food and paper costs last quarter.

Shake Shack's new Chick'n Bites could prove short-lived after they ate into profits last quarter. The menu item fueled a 35% spike in food and paper costs, shrinking the fast-food chain's adjusted operating margin by more than a tenth to 24.4%. The hand-breaded pieces of chicken breast are also time-consuming to prepare. "It's something we've got to see people continue to come back for," CEO Randy Garutti said. Watch Shake Shack trade live.

Shake Shack's new Chick'n Bites could prove short-lived after they ate into profits last quarter. The menu item fueled a 35% spike in food and paper costs, shrinking the fast-food chain's adjusted operating margin by more than a tenth to 24.4%. The hand-breaded pieces of chicken breast are also time-consuming to prepare. "It's something we've got to see people continue to come back for," CEO Randy Garutti said. Watch Shake Shack trade live.

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