Shake Shack named a new CEO on Thursday, the first outsider to lead the company in its 20-year history.
Rob Lynch, the current president and CEO of the Papa John’s pizza chain, will join Shake Shack’s board and become its CEO on May 20.
Lynch succeeds Randy Garutti, who started what would become Shake Shack from a hot dog cart in New York’s Madison Square Park in 2001. At the time, Garutti was the director of operations for restauranteur Danny Meyer, the founder of Union Square Hospitality Group and the chairman and founder of Shake Shack.
Shake Shack was founded in 2004 and held an IPO in 2015. Garutti will remain with the company through the end of this year to ensure a smooth transition.
Meyer said Thursday that Lynch is an ideal candidate to lead Shake Shack as it embarks on a period of global growth. Shake Shack ended last year with 518 stores worldwide, including 184 outside the U.S. The company has said it plans to open 80 more stores this year. Papa John’s has 5,900 stores worldwide, including 2,473 outside the U.S.
Lynch became president and CEO of Papa John’s in 2019. Previously, he was president of Arby’s, where he also served as chief marketing officer. He has also held senior roles at Taco Bell, Heinz Co. and Procter & Gamble.
Shake Shack shares fell 2% in morning trading. Papa John’s shares were down 6%.
In a surprising turn of events, Papa John’s CEO, Steve Ritchie, has been appointed as the new leader of Shake Shack in a recent CEO change-up. This move comes as a shock to many in the fast-food industry, as Ritchie has been at the helm of Papa John’s for several years and has been credited with turning the struggling pizza chain around.
Ritchie’s appointment as CEO of Shake Shack is seen as a bold move by the company’s board of directors, who are looking to shake things up and bring a fresh perspective to the popular burger chain. With his proven track record of success at Papa John’s, Ritchie is expected to bring a wealth of experience and knowledge to his new role at Shake Shack.
Shake Shack, known for its high-quality burgers and shakes, has seen rapid growth in recent years and has become a favorite among fast-food enthusiasts. However, the company has faced some challenges in maintaining its momentum and staying ahead of the competition. With Ritchie at the helm, Shake Shack is hoping to capitalize on his leadership skills and strategic vision to drive the company forward and continue its growth trajectory.
Ritchie’s appointment as CEO of Shake Shack is also seen as a positive move for Papa John’s, as it allows the company to bring in new leadership and fresh ideas to continue its own growth and success. Under Ritchie’s leadership, Papa John’s has seen significant improvements in its sales and profitability, and his departure is expected to have a minimal impact on the company’s overall performance.
Overall, the appointment of Steve Ritchie as the new CEO of Shake Shack is an exciting development for both companies and the fast-food industry as a whole. With his proven track record of success and strategic vision, Ritchie is expected to bring a new level of innovation and growth to Shake Shack, while also setting Papa John’s up for continued success in the future.
