JONESBORO, Ark. (KAIT) - Citing financial woes brought on by the COVID-19 pandemic, the national chain Steak 'n Shake announced Monday it had permanently closed dozens of stores.
The Jonesboro location will remain open.
Saying the COVID-19 pandemic “adversely affected our operations and financial results,” Biglari Holdings, the chain’s parent company, announced they have closed 57 stores. Of those, 51 were operated by the company and six were owned by franchisees.
In addition, according to an earnings report filed with the federal Securities and Exchange Commission, 62 of the 306 company-operated stores were temporarily closed as of March 31.
Limited to takeout, drive-thru and delivery orders, the chain’s revenues fell by $59 million during the first quarter compared to the same time last year.
“The COVID-19 pandemic could cause disruptions to our supply chain,” the report said. “Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products.”
Biglari Holdings did not provide a list of stores that had closed.