Steak 'n Shake restaurants across the United States have closed due to lack of sales during the COVID-19 pandemic.
Biglari Holdings Inc., Steak 'n Shake's parent company, announced that it has closed 51 corporate-owned locations and six franchise-owned locations.
"The COVID-19 pandemic had an adverse effect on our restaurant operations," Biglari said in a recent report. "Thereby resulting in the evaluation of company operated restaurants for recoverability."
Biglari Holdings reported impairment charges of $10.3 million as a result of the closing locations and the expected impact of the COVID-19 pandemic on future operating performances of other restaurants, the report said.
The duration and extent of the coronavirus pandemic cannot be reasonably estimated at this time, the report said. The risks and uncertainties could lead to future impairment and significant adjustments to the company.
Biglari had reduced its total number of restaurants to 533 from 624 a year ago from additionally selling one location to a franchise and 10 locations to operating partners.
Since the restaurant chain temporarily closed all dine-in service in March as a result of the pandemic, Steak 'n shake has been offering takeout, delivery and drive-thru options.
