UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 20, 2004
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THE STEAK n SHAKE COMPANY
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(Exact name of registrant as specified in its charter)
Indiana 000-08445 37-0684070
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
36 S. Pennsylvania St., Suite 500
Indianapolis, Indiana. . . . . . . . . . 46204
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (317) 633-4100
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ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On January 20, 2004, The Steak n Shake Company (the "Registrant" or "Company")
issued a Press Release announcing its fiscal year 2004 first quarter results.
The information in the Press Release is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE STEAK N SHAKE COMPANY
By: /s/ James W. Bear
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James W. Bear,
Senior Vice President and
Chief Financial Officer
Dated: January 20, 2004
Exhibit Index
Number assigned
in Regulation S-K
Item Description of Exhibits
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(__) 99.1 Press Release, dated January 20, 2004, announcing fiscal year
2004 first quarter results.
Exhibit 99.1
[GRAPHIC OMITED]
THE STEAK N SHAKE COMPANY ANNOUNCES
STRONG SALES AND EARNINGS INCREASES
INDIANAPOLIS, January 20, 2004 - The Steak n Shake Company (NYSE:SNS)
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reported today its revenues and earnings for the First Quarter of Fiscal Year
2004 ended December 17, 2003.
Highlights of the Quarter include:
- Net Earnings increased 35% to $4,590,141
- Diluted Earnings per Share increased 30.8% to $0.17
- System wide sales increased 12.3% to $136,279,158 for the Quarter.
- In First Quarter, Revenues for the Company increased 12.2% to
$114,472,813.
- As previously announced, the FY2004 Earnings objective is between $0.98
and $1.02 Diluted Earnings per Share.
- Same store sales increased 11.2%.
The same store sales momentum marked the fourth consecutive quarter of customer
count and same store sales growth. This growth continued in the first period of
the Fiscal Second Quarter (Period 4) with same store sales growth of almost 8%
despite less couponing and the strong sales of the prior year due to the rollout
of credit cards.
The Company continues to focus on five key fundamentals that are linked in a
"virtuous cycle". These elements working together appear to have contributed to
the sales and profit momentum.
- Supporting and Enabling Effective Field Leadership
- Improving Associate Satisfaction and Training
- Growing Guest Counts
- Continually Improving Margins
- Expanding the Brand
Progress continues in reducing management turnover and in meeting staffing goals
to support both current operations and future expansion.
Progress has been made in improving associate satisfaction through increased
training, enhanced benefit offerings, and associate involvement in the planning
process, which have all contributed to turnover reduction.
Guest counts grew during the Quarter due to optimized and integrated marketing
programs based on the results of consumer research. New products like the
Eggnog and Chocolate Mint Milk Shakes and the Takhomacard gift card program
created news and consumer interest. New television markets in the Quarter were
Toledo, Lansing, Dothan, Topeka and Charlotte.
In the Quarter the Company made incremental investments in marketing, consumer
research and field management bonuses. Additionally, the Company experienced
food cost inflation in the Quarter, particularly in beef and cheese products.
However, these costs were more than offset by the incremental profit generated
by the 11.2% increase in same store sales resulting in an increase of 35% in Net
Earnings. The 11.2% increase is compared to a 4% decrease in comparable sales
experienced in the First Quarter of last year.
As of December 17, 2003, there were 412 Steak n Shake restaurants, of which 59
are franchised operating in eighteen states. During the Quarter, the Company
opened a total of three restaurants in Dallas, Indianapolis, and Pittsburgh.
Two franchise restaurants opened, one in the Atlanta DMA and one in the
Springfield, MO DMA. The Company is on track to open 15-20 restaurants as
announced previously, of which several will be franchise locations.
Steak n Shake is a full service, casual dining restaurant serving a core menu of
its famous Steakburgers, thin 'n crispy French Fries and old fashioned
hand-dipped Milk Shakes. Menu variety includes sandwiches, such as the Turkey
Melt and the Grilled Chicken Breast, as well as Chili, home style soups, fresh
salads, a variety of desserts and breakfast. All of the food is prepared to the
customer's order and served by friendly, well-trained employees. Steak n Shake
restaurants feature full-service dining areas, counter service and drive-thru
windows. Restaurants are open 24 hours a day, seven days a week.
This press release contains various "forward looking statements" which represent
the company's expectations or beliefs concerning future events. Investors are
cautioned that reliance on "forward looking statements" involves risks and
uncertainties, and although the Company believes that the assumptions on which
the "forward looking statements" contained herein are based, are reasonable, any
of these assumptions could prove to be inaccurate and, as a result, the "forward
looking statements" based upon those assumptions also could be incorrect.
Investors are referred to the full discussion of risk and uncertainties
associated with "forward looking statements" contained in the company's filings
with the Securities and Exchange Commission.
Contact: Victor F. Yeandel
Vic.yeandel@steaknshake.com
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www.steaknshake.com
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(317) 633-410
THE STEAK N SHAKE COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
TWELVE WEEKS ENDED
12/17/2003 12/18/2002
(UNAUDITED) (UNAUDITED)
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REVENUES
Net sales . . . . . . . . . . . . . . . . . $113,515,648 $101,284,729
Franchise fees. . . . . . . . . . . . . . . 957,165 770,030
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114,472,813 102,054,759
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COSTS AND EXPENSES
Cost of sales . . . . . . . . . . . . . . . 26,571,398 22,752,278
Restaurant operating costs. . . . . . . . . 57,133,360 51,742,281
General and administrative. . . . . . . . . 9,134,845 8,212,768
Depreciation and amortization . . . . . . . 5,552,748 5,439,226
Marketing . . . . . . . . . . . . . . . . . 4,224,152 3,655,650
Interest. . . . . . . . . . . . . . . . . . 3,006,441 3,215,398
Rent. . . . . . . . . . . . . . . . . . . . 1,896,526 1,602,492
Pre-opening costs . . . . . . . . . . . . . 379,888 628,023
Other income, net . . . . . . . . . . . . . (513,686) (483,413)
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107,385,672 96,764,703
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EARNINGS BEFORE INCOME TAXES. . . . . . . . . . 7,087,141 5,290,056
INCOME TAXES. . . . . . . . . . . . . . . . . . 2,497,000 1,888,000
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NET EARNINGS. . . . . . . . . . . . . . . . . . $ 4,590,141 $ 3,402,056
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NET EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE:
Basic . . . . . . . . . . . . . . . . . . . $ 0.17 $ 0.13
Diluted . . . . . . . . . . . . . . . . . . $ 0.17 $ 0.13
WEIGHTED AVERAGE SHARES
AND EQUIVALENTS:
Basic . . . . . . . . . . . . . . . . . . . 27,190,222 26,945,360
Diluted . . . . . . . . . . . . . . . . . . 27,498,629 26,992,796
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
12/17/2003 9/24/2003
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ASSETS
Current assets. . . . . . . . . . . . . . . $ 41,977,360 $ 39,255,997
Property and equipment - net. . . . . . . . 359,549,461 360,878,710
Leased property - net. . . . . . . . . . . 3,640,850 3,721,063
Other assets. . . . . . . . . . . . . . . . 10,490,021 10,779,813
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Total assets. . . . . . . . . . . . . . . . $415,657,692 $414,635,583
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities . . . . . . . . . . . . $ 58,213,085 $ 61,795,680
Deferred income taxes and credits . . . . . 3,068,887 2,897,887
Obligations under capital leases. . . . . . 144,278,640 145,124,559
Senior note . . . . . . . . . . . . . . . . 16,203,175 16,203,175
Shareholders' equity. . . . . . . . . . . . 193,893,905 188,614,282
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Total liabilities and shareholders' equity. $415,657,692 $414,635,583
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