More diners at Steak n Shake helped the Indianapolis-based restaurant chain increase sales during its fiscal third quarter.
San Antonio-based Biglari Holdings Inc., parent of Steak n Shake, said Friday that customer traffic to the restaurant chain grew 2.2 percent during the quarter ended July 4, boosting same-store sales 2.9 percent. Same-store sales reflect revenue from restaurants open at least a year.
Despite the rise in traffic, Biglari’s profit fell to $4.9 million, or $3.63 per share, compared with $8.7 million, or $6.49 per share, in the year-ago period.
Quarterly revenue climbed 3.1 percent, to $172.1 million.
Biglari said earnings were lower because the company spent more on efforts to franchise more Steak n Shake restaurants.
Biglari operates 496 Steak n Shake restaurants and 92 Western Sizzlin restaurants. Eighty-two of the Steak n Shake and 87 of the Western Sizzlin units are franchised.
The company said franchise-fee revenue for Steak n Shake rose 20 percent in the quarter.
Biglari shares rose $2.10, or 0.5 percent, Tuesday morning, to $379.98 each.