Steak 'n Shake's parent company announced it would close nearly 60 restaurants after suffering under the economic fallout due to COVID-19.
Biglari Holdings Inc. said in its first-quarter report that it will close 51 company-owned stores and six franchises after net sales dropped 37%, or $61 million, compared with 2019, according to the company’s first quarter report.
"The COVID-19 pandemic has adversely affected our operations and financial results," Biglari said in its report.
Closing the dining rooms at dozens of its stores to protect against the virus greatly affected the chain’s viability over the last couple of months, according to the report.
Takeout, drive-thru and delivery remained open at most locations, but Biglari explained the outbreak had potential to disrupt the supply chain as dining rooms reopen across the country.
"Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products," the company said in the report.
In addition to Steak 'n Shake, Biglari Holdings owns Western Sizzlin which reportedly had $50 and $0 of debt outstanding "under its revolver as of March 31, 2020 and December 31, 2019, respectively,” according to a USA Today report.
The Indianapolis-based burger chain, Steak 'n Shake closed dining rooms in most of its locations by the end of March, closing the rest by the first quarter according to the report.
About the Author
