because most people would say shake shack isn't a small business. >> shake shack did the responsiblehe law was written, if you had any fewer than 500 employees per business, per restaurant, shake shack has about 48 employees per restaurant, you are eligible. the banks made the loans, shake shack did the right thing. however, the very day after shake shack received the loans, the news came out that the government had severely underfunded the payroll protection program, there was a justifiable outcry of many, many small businesses who had not been able to access it either because the government had run out of money or perhaps they didn't have the banking relationships that a business like shake shack did. so shake shack then, with that information, did the right thing and responded and returned the loan. interestingly, since that point, about $2 billion in loans have been returned. so, you know, it's like so many aspects of this virus, there is no road map, there's no crystal ball, and you just have to keep using your compass with the information you have at that time. >> trevor: so th

kate rogers joins us with the details. >> a mixed first quarter for shake shack. a miss on revenues as the company warned in its preliminary earnings report in april, same shack sales fell by 12.8% for the quarter. the end of march really hit the company hard, sales falling to 29% due to shutdowns seen across the country. a few bright spots in these earnings report. they noted the company is beginning to hire back some of the companies that it's furloughed since the low point of the quarter, shake shack is seeing steady increases in sales thanks to expansion of its integrated delivery partnerships and its licensed business is starting to experience small signs of recovery in korea, hong kong and mainland china in a limited capacity covid-19 will add additional costs as it invests in supplies to keep its staff safe the future impact of the pandemic can't be reasonably measured at this time. kevin johnson just out with a letter to the company's employees as it begins to slowly start to reopen some of its stores across the united states in modified formats beginning t

got bailout money in the small business loan program $10000000.00 of small business money went to shake shack. shake shag you know that old neighborhood haunt created mr shape and his wife miss shaq i just love their original take on frozen crinkle cut fries the l.a. lakers one of the richest franchises in the n.b.a. received 4 point $6000000.00 of small business funds yet such a small business sometimes le bron james has to clean the stadium he's just so good at getting those hard to reach places treasury secretary stephen newton the leader of the program and robot annoyed by human existence responded to the confusion over who and what qualifies as a small business certain people on the p.p.p. may have not been clear in understanding the certification so we will give people the benefit of the doubt we're going to put enough a q. out to explain the certification finally and f.a.q. what are the questions like number one do you identify as a small business do you say like shake shack have about $6000.00 employees are a publicly traded franchise and with a $15000000.00 net profit and pay your c.

it's been impressive to see the changes they're trying to make we are fortunate shake shack today we supply chain. we use only hormone anti-biotic free all-natural beef and the supply chain we have has not been impacted. however cost is up and up significantly in the last few weeks. it's something we're watching daily. i think you'll have some near-term impact we don't know how long that will go for it's important for us as we've transitioned our menu, we sell a lot of chicken now our chicken shack and chicken bites, a ton of vegetarian sroom burgers and fries. we're hedged against that but it's something we're watching close closely as you see supermarkets and other places start to put on limits our hope is that we can, that supply chain rebuilds into a safe and gives us the supply that we and everybody else needs in the long-term >> randy, it's sara. you mentioned that you have a template going on with business in korea and china and hong kong, starbucks and nike what are you seeing there in terms of what's working and what's not as the consumer comes back >> it's been really encou

report earnings after the close kate has a preview >> for the first quarter, analysts are projecting shake shackill break even on revenues of $145.1 million same store sales will be in focus. shack did release preliminary results in april and said -- by 12.8% for the quarter. they said its business in hong kong and china has started to increase steadily and that over all trends in the u.s. had picked up so guidance as to what business might look like will be of interest. back to you. >> thanks so much for that and shannon, where do you stand in terms of some of these restaurant businesses? we touched on the airlines are these too hard to touch as well >> i think the majority of them if let's put it this way if you're really looking for something over the next three to six months and i think it's early. i think the numbers are going to continue to ease downward. i would say that b global franchises as much we talk about that, if you think b about mcdonald's, think about yum brands, those are certainly going to have a broader geographic footprint and the recovery we're see iing in chine spending t

the shake shack at your shack, the new cooking series to help families at home cooked dinner with thepany's executive chef. four plus one is... 16. (laughter) how many pints of iced tea are left in the pitcher? times... ten... so, wait... (errhhhhh) do you want to show us the continents on the... no. it is not going good. my mom is getting stressed out. (speaks hebrew) momma's tired. i, i'm, like... woooo... (screams) (sighs heavily) so, starting just quickly by breathing in... i never thought i'd say this, but i kind of miss school! the teachers, i mean, y'all are gifted people! i thank you so much for what you're doing. their investment into our children is beyond what we can even imagine. appreciate all that you do. >>> the crisis has overwhelmed many hospitals. forcing them to delay surgeries for patients who do not have the virus. medical officials say hospitals are now struggling to determine how to safely increase the number of essential and elective surgeries, some of these involve organ transplants. people who have waited months or years for an organ have to wait longer becau

lakers and shake shack pledge to return the money to the government so to 14 other publicly traded companies of which some have c.e.o. pay higher than their multi-million dollar relief packages now what's in the government's plan for all that money that went into the wrong hands while. they're going to ask we're. so so mr secretary are you going to request of those other countries obviously she was not alone in being a big company that got money in this region. you're going to ask them to return the money yeah yeah we're going to harvard it's going to pay back from what. they should be taking harbor it's going to you have a number of them are going to other things partner has a $40000000000.00 in down and i feel like they were just taking the money and make sure some businesses go under steve maneuver lay down the law if you pay back the loan right away you won't have liability to the s.b.a. and to treasury but there are severe consequences for people who don't test properly the certification there are severe consequences i don't know what they will be right now but they will be bad. and the

in focus today shake shack and maybe a little bit of good news that says demand is beginning to pick up at some stores but warns of more challenges as it looks to reopen dining rooms in some areas shake shack commenting on how beef prices have been fluctuating as plants have been closing. shares, by the way, are up 58% in just a month. quite a rebound stock. any kind of fast food restaurant i see is pretty busy right now >> a stay-at-home stock for students is soaring. chegg posting blowout earnings with subscriber growth most schools are closed for the remainder of the year. new jersey just announced that yesterday. chegg ceo will be on "mad money. the question there, just how long will our kids be home every day, all day from dawn to sun set. i love my kids >>> elon musk just qualified for a $700 million pay day we'll give you details when "worldwide exchange" returns after this >> announcer: today's big number, $3 trillion. that's how much the u.s. treasury department is borrowing this quarter i know that every single time that i suit up, there is a chance that that's the last tim

you saw a company like shake shack return the money back because it's such a large national chain, a public company that should be able to get money from other sources. now, let's let our viewers take part in this conversation. upare going -- going to open regional lines again. eastern and central time zones, if you want to talk about the future of the restaurant industry, (202) 748-8000. if you are in the mountain and pacific time zones, and you want to talk about the restaurant industry, we want to hear from you at (202) 748-8001. and we are going to open up a special line, i really want to hear from the restaurant owners and workers, we want to know what going on at your place, we want to know how you are surviving this, have you had to close down? are you reopening? the special line for restaurant owners and workers, that's going to be (202) 748-8002. keep in mind you can always text and we're) 748-8003 always reading social media and twitter and on facebook. so, andy, there are a lot of restaurant customers like myself who say we are not going to dine in again until we are sure

coming up here, we will talk with danny meyer, founder of shake shack, about the future of the restaurant industry given the pandemic. that's coming up on "balance of power" on bloomberg television and on radio. w?w?uhió'ñó david: this is "balance of power" on bloomberg television and radio. i'm david westin. time now for bloomberg first word news with karina mitchell. condemnede u.s. has china's plan to impose sweeping national security legislation in hong kong. mike pompeo called the plan disastrous and urged beijing to reconsider. affectislation would hong kong'. the trump administration has repeatedly criticized the agency and is threatening to cut off u.s. funding. it wouldaid this week start the review when the time is appropriate. americans are fleeing weeks of home isolation or beaches, parks, and other leisure destinations over the memorial day weekend, and that has health experts concerned about a spike in coronavirus cases. memorial day travel is still expected to be a fraction of previous years. a third of 2019 levels. global news 24 hours a day, on-air, and on quicktake by bl

we'll explore that and shares of shake shack in the red today same store sales dropping nearly 13%.nding optimistic of how things looked lately >> over that last six weeks we have seen a steady curve up for us it is really encouraging i'd say it's also thanks to the team we have created these drive-throughs at a shake shack that never existed never had a drive-through. we have the drive-up, curbside lanes and shifted to over 80% last week of our sales is on our digit digit digital channels the number of first timers more than doubled so it is exciting because we know that the guests tend to be stickier than a normal guest and we are working back towards dining room reopenings derek, seems like your team is operating just fine remotely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you. >>> welcome back to "the exchange." rally across the board today almost 2% for the nasdaq dom? >> all right it is a day for the bulls but can it last? that's the big question

joaning me now is the ceo of the union square hospitality group, founder of shake shack and joining meceo of kind llc, the maker of kind bars, daniel lubeski. thank you both for being here. danny, let's start with you. yesterday morning on this show we held a town hall of sorts for small businesses and a lot of the questions about small businesses in general but specifically coming to restaurants how you think about reopening, keep your staff on payroll, how you open in a way that convinces your customers that they can be safe which will often mean being in a much lower capacity which is very hard for restaurants, not the world's best money making business and how you keep your staff safe. these are sot of overwhelming questions for a lot of small businesses. >> well, actually you hit the nail on the head, ali. first of all, hi to my pal daniel over there. listen, the issue to open restaurants is you first have to make it safe for your own employees because if you don't do that, all bets are off and in the fine dining full service restaurants is a long time before we can open our doors

you obviously shake shack made a lot of headlines, we had the ceo on a month ago when you gave back the loan money, the $10 million you had taken because a bunch of folks didn't get it, small businesses didn't get it and you guys did and you guys had a balance sheet where you didn't end up meeting it, you gave it back. put that aside where we are a month later, the ceo of best western hotels told me essentially on the show. ppp doesn't work for hotels. you can't bring people back to work. does the ppp program really even work for restaurants when almost all of yours are closed, you -- >> not yet it doesn't. we're really hoping that policymakers have gotten the message that this is actually something that will back fire on the hospitality industry unless we extend the forgivable date to at least 24 weeks and not eight weeks. in order to have the loans be forgiven, you have to have hired back three quarters of your staff by june. that won't happen. >> mm-hmm, yeah. it won't. you have also been named the co-chair of the coalition for new york city hospitality, tourism and recovery. what do

. >> steve >> shake shack this one's trading like we're never restarting the economy >> shake shack >r me. >> guy >> delta for a trade. >> thanks for watching fast. "mad money" starts right now >> my mission is simple, and, and i promise to help you find it mad money starts now ♪ ♪ >> hey, i'm cramer welcome to "mad money," welcome to cramerica people want to make friends and i'm just trying to make you money and my job is not just to entertain, but to educate and teach and call me at

>> shake shack this one's trading like we're never restarting the economy >> shake shack >> karen >> bank of america for me. >> guy >> delta for a trade. >> thanks for watching fast. "mad money" starts right now >> my mission is simple, and, and i promise to help you find it mad money starts now ♪ ♪ >> hey, i'm cramer welcome to "mad money," welcome to cramerica people want to make friends and i'm just trying to make you money and my job is not just to entertain, but to educate and teach and call me at 800-743-cnbc or @jimcramer >> i love billy paul, but only the strong survive is the wrong anthem for age of covid-19, but i do think that's where we're headed and even after a good day like this one, and the s&p climbed 1.91%s and thing is the average is dominated by the fittest stocks and the ones with the strongest balance sheets and they will do so where most commerce -- when most commerce is on hiatus, and they'll still be there, but other companies lesser known, but still in the s&p 500 need credit to make it through, not because they're reckless and poorly managed, but because it

also, as you look at shake shack which was a large public company again, they have the financial means, whether they want to pay their people or not is completely up to them. i don't think those were the types of companies that we thought could make the certification so i came out early and defending the program and again, it was a small number of companies and what is over four and half million loans and it's a small number of companies that jeopardize the program and we did say that we would review and hold accountable anybody who has a loan over 2 million. i think some legitimate companies got very concerned about the liability so we toned that down and said okay, if you go through review and pay back the money the sba will not refer you to any other further enforcement actions but yes, the bigger loans will be reviewed and they will be reviewed on a case-by-case basis and companies can make their arguments with no different then you go through any review. >> there's all lawsuit pending about the nonpublic companies. media organizations have said they deserve the right to see who is

. >> why should my small company be put in a situation where it needs to compete with the shake shack and the ruth's chris steakhouse or the lakers. there is no competition, because it's apples to oranges. >> reporter: after waiting for more than a month, he heard about a small lender in idaho and decided to give the little guy a try. he got approved in a day. >> he said randall, i got you in. the loan was accepted. and i had to sit down, my knees were shaking. my voice was trembling. and i actually broke down in tears of happiness, of joy, i just couldn't believe it. >> reporter: this is the small business associations second round of funding for the payment protection program, according to the latest federal data, this time the money is going to more mom-and-pop's, the average loan, $79,000. >> we saw there were signs of an immediate need that needed to be met. >> reporter: jackie rhesus offers up the capital division offering loans to small businesses. she says square has approved more than 50,000 applicants and there is room for more, especially for sole proprietors with no employ

>> coming up at 5:30, after the paycheck protection program was slammed for helping giants like shake shack and the lakers, the little guys could finally be getting some relief. >>> plus the two bay area counties stepping up and offering free testing for all adult residents. >>> and later, a show of support traditionally used for troops now being used b oe li >>> right now on kpix 5 streaming on cbsn bay area, we are all local at 5:30, google tightening its bout

now, several of those companies, shake shack, pot belly's, ruth's chris and the lakers, to name a fewhat that was the right thing to do while others are still refusing to do so, and now trump's own justice department is investigating the program, since the rush to get people the funds has led to fraudsters trying to take advantage of its many loopholes. the government is also finally trying to issue rules that would make it harder for large corporations to get those loans, but some say it's a little too late because small business owners need that money just like they need a government that won't deceive them by trying to score political points as they pander to their wealthy donors. and while many of us probably feel helpless about what we can do to help, each person can support local businesses by doing things like getting gift cards, buying vouchers while services aren't available, and giving positive reviews. because as the trump administration is still scrambling to figure this out, that would be, as trump himself likes to say, so much nicer if we do that this has been "the check

you saw shake shack, which initially took the money, return the money back because it is such a large, national chain and a public company that should be able to get money from other sources. host: let's let our viewers take part in the conversation. we will open up regional lines again. if you are in the eastern and central time zone and you want to talk about the future of the restaurant industry, we want you to call at (202) 748-8000. if you are in the mountain and pacific time zones, and you want to talk about the restaurant industry, we want to hear from you at (202) 748-8001. and we are going to open up a special line, i really want to hear from the restaurant owners and workers. we want to know what is going on at your place. we want to know how you are surviving. have you had to close down? are you reopening? a special line for restaurant owners and workers. that will be (202) 748-8002. you can always text us at (202) 748-8003. and we are always reading on social media on twitter and on facebook. facebook.com/c-span. there are a lot of restaurant customers, like myself, who sa

and now we're going to run it now we thank you thank you for having me what you got seems like shake shackchris steakhouse they got these loans when i mean little mom and pop. when they were intended for companies with less than 5500 employees so i guess if you didn't like chain restaurants before now you're just going to be happy if you have an olive garden near you you're going to be like wow struggler this buffalo chicken pot pie alfredo is so authentic how do i recreate this at home yeah i've got all of these are pulled through i don't know the lakers got money they gave it that. resulted in the little lakers that's what most of the teams. they are going a lot of these companies are pressured to give the money back because they have the loans were intended for companies that don't have access to capital and that's meant so but for example there are companies that have some serious accounting issues like the medics which makes and sells human tissue graft they paid $6500000.00 to resolve with the o.j. investigation and 2 weeks later they received a $10000000.00 federally backed loan the

tale and you put in $3 million, quickly, lost $600,000 and taking losses in can boeing, lululemon, shake shack and the latest read is you are down $1.1 million. >> i don't like that graphic that graphic's gross, but -- it's true. >> that is the truth that is your portfolio, dafr >> i wish it was the other way. >> and yet you keep going into boeing you came on the show last time and you asked about boeing and our traders couldn't be more clear about that stock and you just can't quit it >> i'm a boeing -- i'm addicted to boeing. you're right i can't quit it. i actually made i comeback i was down 600 i went down a million and i basically got even, but this week has been a disaster because i went on a cruise and airlines tirade, and when i say tirade i was backing them warren buffett came out and said get out of the airlines and i said what does the old man know and i'm going into the airlines and it did not work out in my favor. they came back today, the cruises, but i wasn't part of them spirit airlines is also one i don't like that killed me and the thing that i'm learning, so i went heavy on

you're only 20 people i mean you're literally being put to the back of the line versus she you know shake shack for instance which you know is still making money is still bringing in revenue whether takeout or otherwise and yet you know they get pushed to the front of the line because the relationships column crony esther otherwise but it's like where's free market versus where it's not it's you know it's all met to synthesize towards further hybridisation of what we would know classically as market fundamentalism versus just straight up you know giving $2000.00 a month to folks that are destitute and or sick and not putting them into poverty traps where the same time questionably limiting them from all of a sudden wanting to become entrepreneurial wanting to become elan musk wanting to learn. and in advance these are bigger questions that are just being brushed to the sidelines because again you don't want to get sick and ill and die so those you know it's like there's purposeful confusion so that people aren't able to think lucidly and rely further and further emotionally and psychically on g

shake shack for example returned their ppp money.turealked to capitalists who said that venture startups should not applying for this money because they obviously have sources of funding elsewhere. you have been a venture capitalist. i am sure you have some thoughts on this. why do you think a company like all turtles should have this money rather than a laundromat or a restaurant that might not cap siliconlity to valley cash? phil: hopefully it is not us versus somebody else. it is not that complicated. the program was put in place for specific reasons. it is meant for companies that do not have ready access to other capital so they can keep people on payroll. if you meet those two criteria, there is not a ready source of u -- source of capital and you needed to keep from lynn peeples off -- from laying people off, then it makes sense. we are all expecting that by the time we come out of the pandemic crisis, there will be this wave of innovation in the new world should be better than the old world. that is going to take a lot of inn

this is after one of the programs was met with criticis when businesses like shake shack and sports programs such as the lakers were able to access the ppp. now both of those companies have returned their loans the new process is shorter and more stream lined. a two-page application the borrower has to make a certification in good faith that the current economic conditions right now make this necessary. and the 7 a funding requirements exhausting other sources and saying hedge funds and others may not apply. this comes after the banking community was divided with regard to the banking window for those with under $1 billion in assets to ensure e tran was running more smoothly and to make sure smaller businesses could access aid the idea that this tips the hand to certain businesses when in reality all businesses of all sizes borrow are banks of all sizes. it is unclear why that concern >> are we talking about fraud on borrower's parts lying about the need for the money, the transactions, the forms? >> it is not yet clear it seems the emphasis here is really the doj honing in the sba declined

coming up on bloomberg television, the shake shack founder joins us.g radio, we will discuss the future of the restaurant business. this is bloomberg. ♪ >> from new york to our audiences worldwide, this is "balance of power." i am david westin. we start again today with a report of the markets. the markets are up for a second day, this time i think because of china. abigail, what's going on? abigail: overall it's a sleepy day, sort of surprising. in the asian session we had a very big decline in hong kong. the shanghai composite off sharply. worst day since 2015. hat on the security that surprise issue on hong kong, really creating a sense of risk. it has not traveled to europe or the u.s. right now we have the s&p 500 off just modestly. where we are seeing some of that increasing tension of the pain fng. alibaba.

let's take a look at shake shack which is a slightly different story. profits better than expected.ed hamburgers are back in. shares were actually higher. they are saying a recovery could reopen and help the economy. they're considering doing drive-through. and then we've got tyson. the stock plunged as much as 8% on earnings. that has a lot to do with the virus pushing of costs, clouding outlook. they are saying we are going to continue to see disruptions in food service industry. they recorded 100 million loss that would impact beef and chicken. shery: what about those companies that are now struggling to restructure in their crushing debt? hertz as theok at poster child for that. look at their stock, your to date just fell off a cliff. the pandemic and shutdown down in the travel industry, they have been hit hard. they hired another bankruptcy advisor and the stock felt even more. down 20% in extended trading. if you look at the big news hours,headlines after retailers have been hit hard. neiman marcus reportedly closing in on lenders like pimco, j.crew which is a peppy -- preppi

remember shake shack? they handed back that $10 million they got.uren, i think we got their numbers. tell me how bad the virus hit them. lauren: well, in march, their sales were down 29%. 29% in one month. but they see demand picking up. they say as demand picks up, so will their costs. that's a theme. as companies try to reopen, the costs to do so is going to be higher. look at the stock. it's turning around. that's the new reality. if you want to stay in business, you got to spend money to make sure that you are doing the social distancing thing. the company said one more thing i wanted to point out. there can be no assurance as to the time required to fully recover to pre-coronavirus levels. so the duration of all this, nobody knows. it comes with the cost, though. stuart: that's true of almost every single business i can think of. nobody knows how this turns out six months down the road. we just don't know. but we do know the dow has opened in the first few minutes with a very healthy gain of 300 points. that's 1.25% on the upside. back above 24

secretary, are you going to request that those other companies-- obviously, shake shack was not alonebig company that got money in this-- are you going to be asking-- >> i'm going to request them. >> you're going ask them-- >> i'm going to request-- >> --to return that money. >> yep. >> harvard's going to pay back the money. and they shouldn't be taking it. they are going to pay back that money. >> stephen: yeah, harvard, you know the deal: you don't get to take millions of dollars, unless you also agree to take jared. ♪ ♪ >> jared slam ! >> stephen: harvard responded to the president's attack, saying that it had not received any funds through the p.p.p., but it had received funds through the "cares act" to provide assistance to students facing urgent financial needs due to covid-19. okay, that's a solid fact check. sounds like somebody at harvard went to harvard. ♪ ♪ >> harvard slam ! >> stephen: trump was also asked about how the pandemic is affecting workers at his own properties. >> reporter: your florida clubs have had to furlough workers. >> yeah, that's true. >> have you though

we saw that happen to shake shack, a large company who returned the money after facing a backlash for taking it. some of the schools that have taken this money are right here in the d.c. area. that includes sidwell friends here in washington, that counts chelsea clinton and the obama girls among the alumni and the school that the president's youngest son attends. sidwell said they took the money and plan to keep it because they are committed to their staff. in a statement to cnn st. andrews said like many of its peer schools st. andrews applied for ppe funds through our long standing bank to ensure retention of our faculty and staff during this challenging and uncertain time. steve mnuchin has said criminal liability could be on the table for borrowers if they have made untrue certifications to banks. the way the program is structured it is banks not the government who are issuing these loans and the banks are relying on the information provided by the borrowers just to get the loans out the door quickly. >> all right. sarah westwood, thank you so much. >>> still ahead, your questions

was intended for the restaurants, nail salon, it wasn't intended for the los angeles lakers or shake shackly they returned the money. they shouldn't have applied for it in my opinion. >> the werent was due and there grace period until the 5th. that's tuesday. for people spending this weekend worrying, they didn't pay it, how will i pay it? i can't pay it, what do i do? what can those people do in the next couple days if they know they don't have the money for rent? >> i mean, victor, the best there sing to get in front of the bus and negotiate with your landlord and tell him about your situation. they don't apt vacation apartme apartment. you need to look into your state eviction rules, it varies from state to state, a state like new york, they have a moratorium state wide right now until june 20th. in california, have you as to prove income. there is also a moratorium as well f. are you in federally backed housing, it will be different under the c.a.r.e.s. act. the best thing to do is talk to your landlord, nobody wants to have a have a can't apartment. >> ted jen ken, always good to have