|First quarter results: sec.gov|
Steak n' Shake permanently closes 51 restaurants, continuing the chain's dangerous downward spiral toward bankruptcy
May 12, 2020
-- Steak n' Shake is permanently closing 51 restaurants, according to parent company Biglari Holdings' most recent quarterly report.
-- The burger chain has been struggling for the last several years, "temporarily" closing over a hundred locations and hemorrhaging millions of dollars as sales plummet.
-- nSteak n' Shake's turnaround plan relies on selling all corporate-owned restaurants to franchisees, eliminating the brand's dine-in aspect, and inventing a new milkshake machine.
Steak n' Shake is closing 51 restaurants permanently, according to a recent quarterly report from its parent company, Biglari Holdings.
The hamburger chain's net sales for the first quarter of 2020 were down $60.9 million compared to the first quarter of 2019 — a 36.8% year-over-year decrease.
Steak n' Shake has been struggling to regain its footing for a while. Despite Biglari Holdings CEO Sardar Biglari's efforts to turn the chain around, Steak n' Shake has been hemorrhaging money and locations in the last few years. In 2019, the chain reported a $26 million year-over-year decrease in sales, and "temporarily" closed 111 locations by November.
Steak n' Shake did not respond to Business Insider's request for comment on its restaurant closures.