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sns cust traffic up 6.2% and sss up 1.8% qtr to date so far


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good news for patient long term sns & west shareholders:

 

"Quarter-to-Date (December 18, 2008-March 11, 2009)

 

Customer Traffic +6.2%

 

Same Store Sales +1.8%

 

(Comparable store sales represent sales associated with only those restaurants in operation for at least eighteen months.)

 

Management does not believe comparable store sales constitute the main, exclusive, or most important metric to measure results. However, these numbers call attention to long-term traffic trends as a pertinent gauge useful in evaluating the business. Thus far, management is pleased with its progress in its efforts to turn around the company. Notwithstanding, management's long-term goal is to sustain increases in customer traffic along with maximizing free cash flow -- to attain its ultimate objective, maximizing the per-share intrinsic value of the company."

 

http://finance.yahoo.com/news/The-Steak-n-Shake-Company-prnews-14614220.html

 

congrats to my fellow believers & shareholder brethren!

 

 

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  • 4 weeks later...

one employees anecdotal confirmation of sales & things heating up at sns from blogosphere (yea, take with a grain of salt):

 

"...As I said, many changes have taken place, such as moving stuff around and eliminating shelves and stuff so the company can get money back for selling the shelves as scrap metal and stuff. If you've been to Steak 'n Shake lately, you'll notice a lot of changes to the menu. We've eliminated our taco salads and yogurt shakes to adding hot dogs (or in SnS terms, Steak Franks) and perhaps our most popular new addition, the Steakburger shooters. I'm already getting tired of making those little things hee hee. But it definitely shows that we're competing with all the other big-name restaurants...

 

...I think about other people who work in their great professions all the time and how they feel secure or not. Especially those who come to Steak 'n Shake all the time and those who can afford a big meal for them and their friends at 3 in the morning. Sometimes I ask myself, what recession? Our business arguably has increased and I feel it will continue to do so as the weather gets better. I've never seen it so busy in March..."

 

http://jasonvoigt.blogspot.com/2009/04/its-like-that.html

 

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on the note of the shooters:

 

I was in our Lexington location, and while waiting for my food, was talking with one of the managers. When asking about the popularity of the 'shooters' he said that after they were promoted, they did quite well. Apparently he hated them at first, since a case of the buns (I think he said there were 100/case) would last over a week... now, they are ordering 10-12 cases, 3 times a week.

 

at a buck a piece, that's around $175K/year... pretty impressive if you think about it.

 

 

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You know, I sent some ideas to Sardar several months ago, and one of them was the sliders and another one was updating their website with targetted marketing.  He was already working on both things.  The sliders were shortly being tested in Atlanta, and within a month or two, they were already being offered across all regions.  Yet the website has not had anything really updated, other than information regarding the company on the "Investing" page and the new franchises available in different regions on the "Franchising" page.

 

I'm guessing that Varnson was sitting on their ass and taking their sweet time getting things in motion.  Has anyone seen any advertising for the new mini burgers?  Is there even a picture of them on the website?  They've gotten rid of several things on the menu and added some things, yet the website menu is the same as last year.  Sardar issued equity to these guys to incentivize them, yet here we are almost two months into the sliders and I've yet to see any ads pertaining to them.  We get a Chicago station and they show Steak'n Shake commercials on there.  I've seen commercials for the value menu deals, but none for the the new hotdogs or sliders.

 

As John said in his interview, talk is cheap with Sardar.  He likes to get things done, and he's probably somewhat impatient with service providers when he's working 17 hour days himself.  He's away from his family for the week because he has alot at stake, and Varnson aren't viewing the situation with the same sort of urgency.  We'll find out eventually exactly what happened, but if a lawsuit means getting a more efficient marketing company, or getting these guys off their butts, then I'm ok with that.  Cheers! 

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Yet the website has not had anything really updated, other than information regarding the company on the "Investing" page and the new franchises available in different regions on the "Franchising" page.

 

I'm guessing that Varnson was sitting on their ass and taking their sweet time getting things in motion.

 

good points, sanjeev. although, do advertising agencies really have that much responsibility for a co's website? its design, content, updates, & what not?

 

but its all the more surprising that sns has managed the beginnings of a turn around in light of their advertising troubles.

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Wow! The latest numbers imply that for the last 28 days of the quarter, customer traffic increased year-over-year by 12.6% and same store sales by 4.2% (assuming that traffic and sales were uniformly distributed through the quarter last year). This is far better than anything I expected. Now to see what the bottom line numbers look like...

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