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Weak Q1 for Steak n Shake

INDIANAPOLIS-The quick-serve restaurant chain sees same-store sales and profit dip into the red.

By Jennifer D. Duell | Updated on January 27, 2006

INDIANAPOLIS-Blaming a drop in customer confidence, the Steak n Shake Co. posted a weak first quarter fiscal 2006 with same-store sales decreasing 1.1% and profit dropping to $4.7 million from $5.1 million for the same period last year.

The weak performance was inline with expectations, said the chain’s president and CEO Peter Dunn during the quarterly earnings conference call. “We delivered solid results for first quarter fiscal 2006,” he noted, pointing out that same-store sales decrease follows same-store sales increases of 7.8% and 11.2% in the first quarter of fiscal 2005 and 2004, respectively. He added that the chain expects same-store sales to reach 1% during the course of the year as consumer’s regain their lost confidence.

During the quarter, total revenues increased 9.7% to $138.7 million and diluted earnings per share were 17 cents. Net earnings for the fiscal first quarter 2006 were $4.7 million, or 17 cents per share, compared to $5.1 million, or 18 cents per share, in the same quarter last year.

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