Steak n Shake serves up weak results

November 15, 2007
Indianapolis-based Steak n Shake Co. reported more grim quarterly results today, and the company's outlook for 2008 isn't much better.
After the market closed today, the company said same-store sales fell 3.9 percent in its fiscal fourth quarter, which ended Sept. 26. Revenue dropped to $151.1 million compared with $152 million during the same period in 2006.
Acting CEO Alan Gilman said in a statement that Steak n Shake is "working with a sense of urgency" on "simplifying business initiatives, intensifying the focus on field leadership and store level execution as well as critically reviewing the company's cost structure."
The company is forecasting a same-store sales decline between 1 and 5 percent in fiscal 2008, due in large part to the rising cost of dairy and minimum wage increases.
Steak n Shake shares fell to a 52-week low of $12.78 today before rebounding slightly to a close of $12.88. Shares are down 25 percent since this time last year.
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