Shake Shack signage

Shake Shack stock plunges despite sales growth

Predictions of sales slowdown and higher labor costs hurt chain on Wall Street

Shake Shack Inc. on Monday told investors that it expects sales to slow down in 2016 while labor costs rise because of the chain’s decision to increase pay for its workers this year.

Investors didn’t like it. Despite strong same-store sales in 2015, along with lower food and labor costs, the company’s stock plunged more than 11 percent on Tuesday.

“We want to be conservative, as we always have been,” Shake Shack CEO Randy Garutti said during the company’s earnings call

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