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Shake Shack Gains Premarket On Plans For China Expansion

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By Dhirendra Tripathi

Investing.com -- Shake Shack (NYSE:SHAK) shares were up almost 4% in Wednesday’s premarket session as the company’s announcement of its plans for expanding in China cheered traders.

China is Shake Shack’s fastest growing international market.

The company, known for its roadside outlets serving American fast food, said it will open 10 Shacks in new territories by 2031, including locations in Sichuan, Chongqing, Yunnan, Hubei, Shaanxi, Anhui, Henan and Guizhou.

The company’s Chinese licensee, Maxim’s Caterers, will lead Shake’s expansion in the world’s most populous country.

The new agreement increases the company’s development commitment with Maxim’s Caterers in China to 79 by 2031.

There are currently 16 Shacks open in China, with 2021 new market entries so far in Macau and Shenzhen; Hangzhou will come later this year.

A note by Shake Shack quoted Maxim's Caterers Chairman and Managing Director Michael Wu as saying that the two companies will continue to explore a more comprehensive expansion plan into 2031 for China.

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