INDIANAPOLIS Steak n Shake Co., which operates or franchises 502 family-dining restaurants, on Monday reported a profit in its third quarter versus a net loss in the same quarter a year ago. Improved sales helped the company turn the corner, it said.
For the quarter ended July 1, Steak n Shake reported net income of $3.8 million, or 13 cents per share, compared with a net loss of $9.8 million, or 35 cents per share, in the same year-earlier quarter. In last year's third quarter, the company booked $14.1 million in asset impairment charges related to underperforming or closed restaurants.
Latest-quarter revenue rose 1.4 percent to $146.3 million, Steak n Shake said.
Last month, the company said same-store sales in the third quarter increased 5 percent on a 13.4-percent jump in year-over-year guest traffic, indicating a lower average check. Same-store sales fell 5.8 percent in last year's third quarter.
During the past few months, Steak n Shake, like many of its competitors, has been marketing value-focused items and lower price points. It markets "4 meals under $4" and Steakburger Shooters, or mini burgers, at a price of three for $2.89.
Steak n Shake said earnings for the first nine months of the year totaled $2.6 million, or 9 cents per share. During the same nine months in fiscal 2008, the chain reported a net loss of $13.8 million, or 49 cents per share, which includes $14.1 million in impairment charges. Nine month revenue for fiscal 2009 totaled $467 million, down 0.9 percent from the same time frame last year.