Steak n Shake customer traffic up in latest quarter

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.
 

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.