steak 'n shake

S&P warns about Steak 'n Shake's future

The restaurant's financial woes of late are well-documented.

July 23, 2019 - 4:15 pm
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INDIANAPOLIS (KMOX) — There's some more bad news about a beloved burger chain.

S&P Global Ratings says Steak 'n Shake's performance could "deteriorate further" and the company could even miss a debt payment, which could lead to "restructuring."

S&P lowered Steak 'n Shake's credit rating to CCC-, in part because of a $5 million interest payment that's due in September and which the agency believes Steak 'n Shake might not be able to pay. That's part of $184 million remaining in debt that'll be due in 2021.

The restaurant's financial woes of late are well-documented.

The CEO speculated about ditching cherries to save a million dollars a year. A federal court ordered them to pay more than $7 million over management overtime issues.

The company has closed underperforming stores in the Midwest, including St. Louis, hoping to get franchisees to instead take over the locations. It happened once — with a location in Overland.

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