Starboard Reveals Shake Shack Stake | Bloomberg Deals 8/5/2026

Watch on YouTube ↗  |  August 05, 2026 at 20:58  |  44:50  |  Bloomberg Markets
Speakers
Jeff Smith — CEO, Starboard Value
Douglas Bergeron — Founder, DGB Investments
Emily Zhao — Managing Director, Salesforce Ventures
Michelle Davis — Reporter, Bloomberg

Summary

Bloomberg Deals covers major corporate transactions and activism. Jeff Smith of Starboard reveals a new stake in Shake Shack, citing undervaluation and a US franchising catalyst, and reaffirms bullish views on Lamb Weston and CarMax. Activist Douglas Bergeron pushes for a full board overhaul at Ethan Allen. The show also discusses AI venture capital trends, a potential Paramount-Warner Bros. trial, and pharma mega-deal rumors.

  • Starboard's Jeff Smith discloses a new Shake Shack stake and lays out a LONG thesis based on undervaluation and US franchising growth optionality.
  • Smith remains bullish on Lamb Weston (LW) citing a moat and improving earnings trajectory.
  • CarMax (KMX) is highlighted as a cheap turnaround play with a new CEO and omni-channel advantages.
  • Activist Douglas Bergeron targets Ethan Allen (ETH) for a board refresh and digital revamp to reverse years of sales declines.
  • Salesforce Ventures' Emily Zhao discusses AI's next wave in robotics; VC panel debates momentum vs. conviction in AI investing.
  • M&A commentary notes a mega-deal boom driven by tech and energy, with regulatory unpredictability remaining a concern.
  • Reporters discuss the Paramount-Warner Bros. lawsuit timeline and mixed investor reactions to a potential AstraZeneca-Bristol-Myers merger.
Ideas
Jeff Smith CEO, Starboard Value 11:09
Undervalued grower with US franchising catalyst.
Shake Shack is a high-quality, mid-teens growth restaurant business trading at ~10x EBITDA, a deep discount to its warranted multiple given its growth rate. The post-Q1 selloff created a dislocation. The company could accelerate growth by adding US franchising, enabling it to reach 1500 stores in 7 years instead of 12, creating substantial incremental value.
SHAK HIGH
Jeff Smith CEO, Starboard Value 17:52
Moat potato processor in earnings recovery.
Lamb Weston is a premier french fry company with a competitive moat. Since Starboard's involvement, management has been elevated, volumes have recovered, earnings have stabilized, and the stock has performed better. Continued focus on improving the earnings growth trajectory will drive further value.
LW MED
Jeff Smith CEO, Starboard Value 19:09
Cheap omni-channel auto retailer turning around.
CarMax was bought at book value at a cheap multiple of earnings and cash flow. A new CEO and refreshed board are driving operational improvements, gaining market share. Its omni-channel model with physical lots plus digital capabilities should outperform Carvana's model, making it a great investment.
KMX MED
Douglas Bergeron Founder, DGB Investments 40:18
Turnaround via board refresh and digital push.
Ethan Allen's business is fundamentally strong with a domestic manufacturing advantage in a tariff world, but sales have declined for years due to neglect of digital marketing and sales. Replacing the entire board and finding a new CEO will allow reallocation of capital to digital and store refresh, turning around growth and unlocking value.
ETH MED
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This Bloomberg Markets video, published August 05, 2026, features Jeff Smith, Douglas Bergeron discussing SHAK, LW, KMX, ETH. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jeff Smith, Douglas Bergeron  · Tickers: SHAK, LW, KMX, ETH