From Fortune:

Shake Shack claimed its crispy fried chicken was “hormone free”, but the company is now facing potential shareholder proposals after it was revealed that federal regulations already prohibit the use of hormones or steroids in chicken – prompting the company to alter its wording to “no added hormones.” Additionally, the company noted that it’s not making any changes to its food suppliers or supply chain, and animal activist investors are now demanding more transparency. Meanwhile, McDonald’s addressed animal welfare concerns by pledging to avoid the use of gestation crates for pregnant pigs entirely by 2024, following a highly publicized investor proxy fight over years.

One shareholder group is pressing Shake Shack to provide some evidence that its chicken really is hormone free; an activist accuses the company of making “harmful and false” claims. In 2023, a letter from CEO Randy Garutti touted Shake Shack’s focus on “hormone- and antibiotic-free proteins” – a claim that is now being scrutinized. The Accountability Board, an investor focused on stewardship and transparency, says Shake Shack’s claims are “difficult to understand.” Shake Shack responded by telling the Securities and Exchange Commission to omit the shareholder proposal from its 2024 proxy statement while the company quietly made changes to its wording.

Shake Shack isn’t the only fast food company facing shareholder activism over animal welfare issues. Notably, McDonald’s was targeted by activist investor Carl Icahn over its treatment of pigs, eventually pledging to avoid the use of gestation crates for pregnant pigs entirely by 2024.



Read more: Shake Shack, shareholders debate deceptive advertising claims about chicken hormones