Coronavirus forces Steak 'n Shake to close 57 restaurants
COVID-19 has temporarily closed most of the chain's dining rooms
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Fast-casual chain Steak ‘n Shake is shutting the doors to 10 percent of its restaurants.
According to a recent earnings report released by Steak 'n Shake's parent company, Biglari Holdings, restaurant operations have taken a hit in the congoing coronavirus pandemic.
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“The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company-operated restaurants for recoverability,” the report read.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BH | BIGLARI HOLDINGS INC. | 207.89 | -1.46 | -0.70% |
Steak 'n Shake shut down 51 company-owned locations and six franchisee-owned locations in the first quarter of 2020. It also sold one location to a franchisee and sold 10 stores to operating partners. As of March 31, the company now operates 306 Steak n' Shake restaurants, a drop from 368 at the end of 2019.
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Biglari Holdings did not specify where the 57 closed Steak 'n Shake restaurants are located.
According to Biglari Holdings, which is also the parent to steakhouse chain Western Sizzlin’, its restaurants lost $7.9 million during the first quarter. But Steak n' Shake had already been struggling before the outbreak. Biglari Holdings founder and chairman Sardar Biglari said in a February report the fast-food chain had a "dismal" performance in 2019 and was "was once again a drag on results."
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Most of Steak 'n Shake’s dining rooms were already closed by March 17 due to the COVID-19 crisi, as health officials have urged staying 6 feet away from others to slow the spread of the virus.