INDIANAPOLIS Shares in Steak n Shake Co. soared Thursday after the company reported positive customer traffic and sales trends for its current second quarter, a possible indication of a turnaround at the long-struggling brand.
On Thursday morning, Steak n Shake said same-store sales were up 1.8 percent while traffic was up 6.2 percent so far for the quarter, which began Dec. 18 and ends April 8. Steak n Shake's stock jumped nearly 28 percent on the news to close at $7.10. Over the past 52 weeks, the company's stock has traded between $9.43 and $2.92.
In announcing the results, Steak n Shake said in a brief statement that it is "pleased with its progress in its efforts to turn around the company."
Last August, the company named activist investor Sardar Biglari as its chief executive and said it would begin a restructuring program that would include closing underperforming units, reducing corporate spending, shortening hours of operation and reducing corporate-restaurant development.
Like most restaurant operators, Steak n Shake has faced uphill battle with the current recession as it seeks to improve operations and drive sales. For its first quarter ended Dec. 17, 2008, Steak n Shake reported a net loss of $3.4 million, or 12 cents a share, on revenue that fell 3.5 percent to $131.7 million. Same-store sales for the quarter slipped 1.4 percent while guest traffic was down 0.9 percent.
Steak n Shake operates or franchises 490 restaurants.
Contact Bret Thorn at [email protected].