Steak ‘n Shake to close 57 stores, citing financial losses due to coronavirus

SAN ANTONIO, Tex. (UPI) — Steak ‘n Shake’s parent company announced Tuesday that it will close 57 stores following financial losses it attributed to the COVID-19 pandemic.

In its first-quarter earnings report, Biglari Holdings Inc. said it will close 51 Steak ‘n Shake restaurants it owns as well as six franchises after net sales fell 37 percent, or $61 million, in comparison to the same time in 2019.

“The COVID-19 pandemic had an adverse effect on our restaurant operations, thereby resulting in the evaluation of company-operated restaurants for recoverability,” the company said.

Many Steak ‘n Shake locations remained open for takeout, drive-thru and delivery throughout the pandemic but the company expressed concern that the pandemic could cause disruptions in its supply chain.

“We cannot predict how the outbreak of COVID-19 will alter the future demand of our products,” the company said.

Reporting by Daniel Uria

United Press International

+ postsBio

United Press International is an international news agency whose newswires, photo, news film, and audio services provided news material to thousands of newspapers, magazines and radio and television stations for most of the 20th century.

• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Amazon to hire 250,000 workers for holidays
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  14 dead after plane crashes in Amazon
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Coinbase to lay off more than 900 employees
• United Press International

  https://www.heartlandnewsfeed.com/author/upi/

  Samsung announces disappointing 3Q results