Activist investor Engaged Capital is preparing to launch a proxy fight to secure three board seats at Shake Shack. Engaged currently holds a stake of approximately 6.6% in the high-end burger chain. Engaged has been in discussions with Shake Shack's management for over six months and sent a letter to the board in March outlining its proposal for new directors and other changes. The activist investor believes it can double Shake Shack's profitability within two years by implementing adjustments to the company's real estate strategy, store design, labor planning, and supply chain framework. Shake Shack has stated that it is executing its strategic plan and making progress to enhance shareholder value. The company has experienced a decline in its stock price due to inflationary pressures, reduced customer spending, and a decrease in lunchtime diners in major cities.