The second quarter was a decidedly mixed experience for many of the restaurant industry’s big publicly owned chains. The financial results for smaller public operations were no less varied, ranging from Steak 'n Shake’s 7% same-store sales gain to a 16% drop in the intake of RCI’s Bombshells.
Here’s a fuller assessment of how three of those small-cap operations fared.
Black Rifle Coffee Co. suspends coffee-shop investments
A beverage chain founded by and for military veterans, Black Rifle alerted shareholders earlier this month that it will concentrate near-term on expanding sales through other retailers rather than via its own coffee shops, known internally as outposts.
“While the potential is unlimited in what our outposts can do to build our brand and revenue streams, now is not the right time for investment,” CEO Chris Mondzelewski told financial analysts. With higher returns offered by its other channels, “we will continue to invest our capital in building our brand and wholesale distribution.”
Second-quarter revenues for the coffee shops fell 28% year-over-year, to $5.3 million. The company did not disclose same-store sales for the outlets, nor how many remain open.
Biglari Holdings’ restaurant revenues level off
Revenues from Steak 'n Shake and the other restaurant operations of Sardar Biglari’s Biglari Holdings totaled $64.5 million for the second quarter, or roughly $16,000 less than was generated in the year-ago period.
Same-store sales for Steak 'n Shake rose 7%, the company said. It did not break out comparable figures for the company’s other main restaurant holding, Western Sizzlin’. Traffic and pricing metrics were not revealed for either business line.
Biglari Holdings finished the quarter with 482 Steak 'n Shakes, or 38 fewer than were in operation a year ago, and 39 Western Sizzlin’ stores, or six more.
Overall, the company ended the quarter with a net loss of $48.2 million, compared with a year-ago profit of $1.9 million, on revenues of $91.1 million, down 2.6%. In addition to restaurants, Biglari Holdings has a mixed bag of businesses, ranging from Maxim magazine to oil and gas companies.
Results were posted for Biglari Holdings right before chairman and founder Sardar Biglari commenced a drive to secure five of the 10 seats on the board of Cracker Barrel Old Country Store and gain considerable influence over that chain.
Bombshells posts a 16% sales drop
Same-store sales for RCI Holdings’ Bombshells breastaurant chain fell 16.2% for the second quarter, dragging down revenues for the business line by 8.7% to $13.1 million. The company said sales were negatively affected in part by bad weather during the quarter in Texas.
But RCI’s nightclub collection generated a sales increase for the quarter of 1.7%, bumping up sales by less than a point to $62.8 million. The company noted that sales of food at the club increased at a faster rate than alcohol sales, or 5.2% versus 4.9%.
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