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UPDATE: Steak n Shake shares tumble

May 15, 2008

Shares of Steak n Shake Co. tumbled this morning after the Indianapolis company reported late yesterday that same-store sales in its fiscal second quarter declined 6.3 percent.

The stock fell 10.6 percent, to $6.81 per share.

It was the 11th consecutive quarter in which the diner chain reported falling same-store sales.

The company blamed the weak results on "ongoing deterioration in the consumer economic environment and increasing promotional activity throughout the restaurant sector."

Steak n Shake said it was able to partly mitigate those pressures with a successful promotion in February. During the month, it charged $2.99 for a double steakburger and fries.

"While we expect the operating environment to remain difficult, we remain committed to reversing the negative same-store-sales trends while positioning the brand for long-term growth," Wayne Kelley, Steak n Shake's interim chairman, said in a written statement.

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