MARKET NEWS

(Bloomberg) -- Shake Shack Inc. is warning that its competitors may double down on beef and chicken as egg prices surge.

The New York-based chain is relatively insulated from the egg crisis because it doesn’t have a big breakfast business, but its competitors that do are likely to bolster their menus with alternatives, Chief Executive Officer Rob Lynch said Thursday on a call with analysts.

“They’re going to offer more beef products or chicken products,” Lynch said. “When that consumption demand changes, it has the potential to change even some domestic pricing.”

Chicken has become a popular offering for restaurant chains, with McDonald’s Corp. planning to bring back its Snack Wrap in response to customer requests. Prices for chicken have been rising but remain much cheaper than that for beef.

Shake Shack expects beef to see higher inflation in 2025 than it did last year. The company has been working to find more suppliers for many of its ingredients in a bid to manage costs.

Shake Shack shares rose as much as 16% in New York trading, their biggest gain since August, after the chain said January sales rose despite a hit from wildfires in Los Angeles and treacherous cold weather in other parts of the US.

--With assistance from Michael Hirtzer and Emma Court.