INDIANAPOLIS The Steak n Shake Co. reported Monday a loss of nearly $10 million for its third quarter as sales fell and impairment charges and restaurant closures eliminated any profit from a year ago.
For the quarter ended July 2, Steak n Shake posted a net loss of $9.8 million, or 35 cents per share, compared with year-ago profit of $124,000, or nil cents per share.
The latest quarter included charges of $14.1 million, or 35 cents per share, related to 12 restaurants that the company plans to close in the current fourth quarter and 18 units that were written down in value. Charges related to a sale-leaseback transaction also were booked, the company said.
Steak n Shake's third quarter revenue fell 6.1 percent from a year ago to $144.3 million. Same-store sales declined 5.8 percent.
After naming chairman Sardar Biglari its chief executive last week, Steak n Shake said it would undertake a restructuring program that includes additional closures of underperforming units, reduced corporate spending, shortened hours of operation and reduced corporate-restaurant development.
“In my view, our poor performance is not the result of poor economic conditions,” Biglari said in a statement. “Much of our operating shortfall, I believe, is the result of our own lack of execution.”
As of July 2, there were 505 Steak n Shake restaurants, including 436 corporate units and 69 franchised locations.