Biglari Holdings Inc. (NYSE: BH) announced yesterday that its wholly-owned subsidiary Steak 'n Shake is on track to reach its 25th consecutive quarter of same-store sales growth. This momentum has been propelled almost exclusively by an approximate 40% cumulative increase in same-store customer traffic over the same time period.
Sardar Biglari, Chief Executive Officer, stated: "When present management took over the reins in August of 2008, Steak 'n Shake was generating negative cash flows from its core operations, was out of compliance with its debt covenants, and was within 90 days from insolvency. The situation was so dire that we were taking measures such as paying some of our vendors with company shares to stay afloat."
"We quickly succeeded in turning around the chain because of our entrepreneurial culture, by placing the customer first, and in doing so we have been on an impressive streak. Steak 'n Shake will reach a major milestone when it registers its 25th consecutive quarter of increases in same-store sales. All our approximately 23,000 employees, especially those who weathered the most perilous times in our history, ought to be proud of their achievements. I am most grateful for their efforts," continued Mr. Biglari.
Steak 'n Shake's focus on quality – using 100% beef without preservatives or artificial ingredients, as well as fresh produce, always made-to-order – has created the benchmark for success in the premium burger category with nearly 550 locations. Steak 'n Shake's momentum has been supported by geographic and franchise expansion, along with the introduction of new restaurant formats. Steak 'n Shake's flexibility in design and concepts has made the brand popular in universities, casinos, airports, turnpike oases, convenience stores, gas stations, shopping centers, and other venues – always created with the same commitment to award-winning premium quality.
Since the repositioning of the brand, Steak 'n Shake has been the recipient of Nation's Restaurant News Golden Chain Award. Zagat has recognized Steak 'n Shake as creating the #1 Milkshake, and Consumer Reports has ranked Steak 'n Shake as one of the Top 10 finest-tasting burgers.
Steak 'n Shake, a classic American brand, serves premium burgers and shakes in more than 500 restaurants across the country and the world. Since 1934, Steak 'n Shake has served hand-crafted, premium Steakburgers and hand-dipped milkshakes. Steak 'n Shake is a Biglari Holdings company.
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