Shake Shack leans into veggie burgers and vegan shakes as vegan market grows
Shake Shack's (SHAK) "Shroom burger" is getting another veggie companion on the permanent menu, the "Veggie Shack."
The veggie burger — made with mushrooms, sweet potatoes, carrots, farro, and quinoa and topped with American cheese, onions, pickles, and ShackSauce — will retail for $8.29. The burger is one of three new vegan and vegetarian items that will be added to the permanent Shake Shack menu in the United States.
The roadside burger chain is adding this and other items to its menu in an effort to tap into the vegan fast-food market as it builds momentum. According to Future Market Insights, the market is currently valued at nearly $19 billion, with expectations to reach nearly $28 billion by 2033. From 2023 to 2033, the market is expected to grow by 4.5% each year.
The other new items are both plant-based, including a non-dairy chocolate shake made with NotMilk, which will retail for $6.39, and a non-dairy frozen custard, also made with NotMilk, which retails for $4.29.
The veggie burger can be ordered on the app starting May 2 and will join the menu on May 5. Both the shake and frozen custard will be available beginning May 2.
Other fast food giants have tapped into the vegan and vegetarian space including McDonald's (MCD), with its partnership with Beyond Meat (BYND) in a three-year global strategic agreement that began back in 2021. The "McPlant" hasn't been added permanently to any menus in the U.S.
Burger King (QSR), meanwhile, offers the Impossible Burger. Under the YUM! Brands (YUM) umbrella, KFC tested a "Beyond Fried Chicken" with Beyond Meat while Taco Bell tested a "Beyond Carne Asada Steak" last September. Wendy's (WEN) jumped into the vegetarian fast food competition with its Curry Bean Burger, which is similar to Shake Shack's entry.
Shake Shack's permanent menu additions come as the fast food chain picks up momentum with Wall Street. Shake Shack stock year-to-date is up more than 32%. That's higher than McDonald's, up 13%, Burger King's parent company Restaurant Brands International, plus 9.4%, YUM! Brands, which is up 11%, and Wendy's, minus 1.9%.
As the company ramps up its menu plan, it is also ramping up growth. Shake Shack said it expects to open nearly 40 U.S. locations in 2023.
Shake Shack is set to report fiscal Q1 earnings results on Thursday before the market open.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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