Tuesday, March 15, 2011

New Promotions At Steak 'n Shake.

While I don't own shares of Biglari Holdings anymore, I do think it is important to keep up with the company, as I wouldn't mind to be a shareholder again if the price gets to one that I would like to pay. Here is their most recent promotion:

It seems that they are pushing breakfast. It is important to remember the timing of this, and previous statements by management. One of the criticisms that Sardar Biglari had of the old board and management, was that they were pushing unprofitable items, such as breakfast, when customers generally didn't know that Steak 'n Shake had such offerings. Now that the company has been successfully turned around, this should be a nice way of bolstering same store sales AND profitability.

Take a look at the items. Many are ones that are not so specific that they can't be used at other times in the day. For example, they now have a Steakburger with an egg on it (which, by the way, is a delicious idea); the fruit and yogurt parfait consists of things in milkshakes; the bacon is used on burgers. Everything which is breakfast specific, doesn't require much preparation AND are items that can be kept frozen or dry stored, so there is no chance of them going bad.

Disclosure: None.

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