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Steak n Shake posts profit, rise in customer traffic

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Steak n Shake Co. late yesterday reported strong profit and big increases in customer traffic and same-store sales for its fiscal third quarter, which ended July 1.

The Indianapolis-based burger chain reported a profit of $3.8 million, or 13 cents per share, in the quarter, compared with a loss of $9.8 million, or 35 cents per share, during the same time frame a year ago.

Analysts had expected the company to post a profit of 6 cents per share.

Revenue in the quarter increased 1.4 percent, to $146.3 million.

Steak n Shake's customer traffic rose 13.4 percent and same-store sales jumped 5 percent in the quarter compared with the same period of 2008, the company said.

The rise in same-store sales doubled Steak n Shake's increase from the previous quarter, when same-store sales grew 2.4 percent, snapping a 14-quarter streak of declining same-store sales.

Steak n Shake classifies same-store sales as results from stores open at least 18 months.

Two consecutive quarters of positive numbers may reflect a turnaround for the struggling chain. It had reported same-store sales drops for three-and-a-half years.

The encouraging signs also may be the result of heavy discounting. The chain has rolled out several lower-priced menu items this year, including $2.89 Steakburger snack meals.

Sardar Biglari, chairman and CEO of Steak n Shake, disclosed in a prepared statement that the company may pursue investments in the form of acquisitions, joint ventures or partnerships that may or may not be related to its current operations.

Company shares were up 5.8 percent yesterday prior to the release of the company's quarterly earnings report, closing at $10.55 each.
 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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