Shake Shack to Return $10 Million Small Business Loan After Backlash

The fast food chain said it will return its small business loan after receiving backlash from

After drawing sharp criticism for tapping into the U.S. government's small business loan program, Shake Shack (NYSE:SHAK) announced it is returning its entire $10 million loan. The company is the first major firm to give back coronavirus-related bailout money. SHAK stock is down 3.5% in response, last seen trading at $41.93.

On the charts, SHAK is feeling pressure at its 40-day moving average -- a trendline the security hasn't closed north of since its late-February bear gap. For the year, Shake Shack is off 27.5%.

Meanwhile, analysts are on the fence with the security. Of the 16 in coverage, 12 rate the equity a "hold," while two say "strong sell." Additionally, the consensus 12-month price target of $44 is in line with current levels.

Despite this Shake Shack is popular among options bulls today. So far, 4,507 calls have crossed the tape -- five times what's typically seen at this point -- compared to just 899 puts. The two most popular contracts are the 4/24 50- and 45-strike calls with positions being opened at both.