Skip navigation

Steak n Shake shares sink on report of 1st-Q loss

INDIANAPOLIS Shares of Steak n Shake Co. fell to a seven-year low in trading on Monday following a report made after market Friday that the chain expected to report a loss for its first quarter ended Dec. 19.


Steak n Shake's stock fell nearly 18 percent Monday to close at $7.80. Until Monday, Steak n Shake's stock over the past year had traded between $9.41 and $18.10.



Steak n Shake said Friday that it expects a first-quarter loss of between 4 cents and 5 cents per share after same-store sales for corporate units sank 9.5 percent for the period. In the prior year's first quarter, Steak n Shake earned 15 cents per diluted share. Revenue for the first quarter was $136 million, compared with $147 million in the same period a year ago, the company said.



Steak n Shake blamed the disappointing results on guest traffic that was dampened by a "deterioration" in consumer spending, severe weather, aggressive competition and problems in store-level operations. The company said sales also were hurt by a coupon promotion a year ago that was not repeated in the fiscal 2008 first quarter.



Steak n Shake said it would report full results Jan. 24.



The company, based here, and its franchisees operate 491 restaurants in 21 states.


Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.