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July 30, 2020, 4:51 p.m. EDT

Shake Shack pivots to drive-through restaurants

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By Micah Maidenberg

Shake Shack Inc. said it will start opening restaurants with drive-throughs, a sign of the heightened importance of that pick-up option amid the Covid-19 pandemic.

Shake Shack Chief Executive Randy Garutti on Thursday said the company has "started the design process for our first ever drive-thru location, planned to open in 2021."

The burger chain is known for its urban locations that are designed to accommodate customers for in-store dining. The company said in its latest annual report the typical domestic company-operated Shake Shack is usually about 3,000 and 4,000 square feet with seating for up to 100 customers.

Fast-food chains with drive-throughs have focused in part in getting customers food through those windows during the pandemic, with government officials requiring dining rooms to be closed or limiting their capacities starting earlier this year.

The company reported comparable sales dropped 49% in its second quarter that ended June 24.

Shake Shack reported a loss of $16.2 million, or 43 cents a share, compared with a profit of $9 million, or 29 cents a share, the year earlier.

On an adjusted basis, Shake Shack reported a loss of 45 a share, or nine cents worse than forecasts from analysts, according to FactSet.

Revenue fell to $91.8 million from $152.7 million.

The company has seen some improvement of late. For the month ended April 22, comparable sales were down 64% versus last year. For the month that ended June 24, comparable sales were down 42%, the company said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

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