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Truckload of Shake Shack Ribs Stolen in Mexico
Cargo Theft Nearly Spoiled Hit BBQ Sandwich Rollout
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Key Takeaways:
- Shake Shack said a truck carrying 3,000 cases of barbecue ribs was stolen in Mexico, disrupting supply of a viral menu item launched in April.
- The incident adds to pressures from rising beef prices, inflation and cautious consumer spending that already led the company to cut second-quarter guidance.
- The company said it adjusted outlook assumptions and will continue evaluating demand trends and macroeconomic conditions after the unusual supply disruption.
Shake Shack Inc., already grappling with rising beef prices and budget-strapped diners, is facing yet another headache: a stolen truckload of barbecue ribs.
The chain launched a BBQ boneless rib sandwich in late April that was selling “like crazy,” CEO Rob Lynch said on June 4.
It provided a welcome boost after a bruising quarter — but he wasn’t counting on thieves to pounce on the meal, too.
“We thought we were going to run out of BBQ ribs, and we almost did because a truckload of them got stolen in Mexico. I mean, you can’t make this up,” Lynch said June 4 at an investor conference organized by William Blair & Co.
“That’s kind of how this quarter has gone,” he added.
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(Martin Cleaver/AP/File)
More on Cargo Theft
Lynch said the theft, which Shake Shack had joked about on social media in mid-May, involved 3,000 cases of ribs.
This week, Shake Shack cut guidance for the second quarter, citing macroeconomic uncertainty. On June 4, Lynch said the company reduced its outlook in order to take into account higher beef prices. It also wanted to assume the chain might not benefit from the World Cup.
Shake Shack shares fell 2% at 12:04 p.m. in New York trading, erasing an earlier gain. The shares declined 32% this year through the June 3close, while the S&P 600 Small Cap Index rose nearly 15%.
In late March, Nestle SA said that 12 tons of KitKat products were stolen while in transit between a factory in Central Italy and their destination in Poland. The theft did not create supply shortages, the company said at the time.
Christopher Elliott, founder of the Institute for Global Food Security and a professor at Queen’s University Belfast, said such food heists are on the rise globally due to inflation and the potential for quick profits.
“It’s easier to sell BBQ ribs than cocaine and the penalties of being caught are a lot less,” he said.
The thefts have also increased in recent years as organized-crime rings steal goods to distribute in Russia, after the war with Ukraine prompted many U.S. and European food companies to withdraw from the market, Elliott said.
Criminal operators are increasingly turning to cyber-enabled fraud, he added, such as hacked transportation data.
