Steak n Shake falls on preliminary Q1 results
Shares of Steak n Shake Co. (NYSE: SNS) are barreling lower today after the casual dining restaurant chain reported disappointing preliminary first-quarter results after Friday’s close, and said its prior guidance was no longer reliable.
A challenging economic environment, along with a prior year incremental coupon that was not repeated in the current year, unfavorable weather in the month of December, aggressive promotional activity from competitors and ongoing issues with store level execution all combined to cause the company to careen to a loss in the quarter.
For the fiscal first quarter of 2008, the Indianapolis, Ind.-based company said it expects to record a loss per share within a range of $0.04 to $0.05, compared with earnings per share in the first quarter of last year of $0.15. The consensus of seven analysts polled by Thomson Financial was for a profit per share of $0.05.
The small cap anticipates revenue of $136 million, compared with $147 million in the same period last year. The consensus of four analysts polled by Thomson Financial is for revenues of $141.08 million.
Same-store sales are expected to decline 9.5%, as guest traffic declined.
The company stipulated it will concede greater details on an earnings call scheduled for Jan. 24.
Shares of Steak n Shake (SNS) toppled 16.14%, or $1.53, to $7.95 at 1:25 p.m. ET. Shares of Steak n Shake have been trading in the range of $7.75 to $18.10 for the past 52 weeks.
