Activist investor Starboard takes stake in Shake Shack, source says

Aug 5 (Reuters) - Activist ‌investor Starboard ​Value ​has built a new stake in Shake Shack, a source familiar with the ‌matter told Reuters on Wednesday, sending the ⁠company's shares up about 9%.

Earlier in the day, the burger ‌chain had reported second-quarter ‌sales and profit above Wall Street estimates, driven by strong demand for value meals as ​consumers face rising costs of living.

The results were a contrast to its prior quarter ⁠when its shares cratered 30% after it reported a quarterly loss ​and warned of weak consumer spending. The company, which has a market capitalization of $2.83 ​billion, at the time also ‌named its new financial head.

"We appreciate the investment in our company and ⁠the confidence expressed in the quality of our brand and the strength of our operations," Shake Shack ⁠said in a statement to Reuters.

Starboard Value previously made investments ​in other restaurant companies such as french fry supplier Lamb Weston as well as coffee chain Starbucks.

Bloomberg was the ‌first to report that Starboard has taken a position of several hundred ‌million dollars in Shake Shack.

Starboard did not immediately ⁠respond to a ‌request for comment.

(Reporting ​by Koyena Das and Svea Herbst-Bayliss; additional reporting by Savyata Mishra; Editing by Shailesh ‌Kuber)

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