INDIANAPOLIS Steak n Shake Co., which operates or franchises 502 namesake family-dining restaurants, reported a large boost in customer traffic and same-store sales for its third quarter, sending its shares up more than 14 percent on Wednesday.
For the three months ended July 1, Steak n Shake reported that a 13.4-percent jump in year-over-year guest traffic drove a 5-percent same-store sales increase. The results, which include restaurants open at least 18 months, indicate that the chain’s check average fell during the period.
During the past few months, Steak n Shake, like many in the restaurant industry, has been peddling value-focused menu offerings and lower price points. The chain markets "4 meals under $4" and Steakburger Shooters, or mini burgers, for three for $2.89.
In the same quarter a year ago, which is the basis for the latest same-store sales results, Steak n Shake’s same-store sales fell 5.8 percent.
On the news, the company’s stock rose 14.4 percent on Wednesday to close at $9.28 per share. The stock has traded as high as $12.10 per share and as low as $2.92 per share during the past 52 weeks.
The company is expected to release full third-quarter results early next month.
Contact Bret Thorn at [email protected].