S&P puts Steak n Shake on positive watch

U.S.-based restaurant company Steak n Shake Inc. has repaid the remaining balance under its $220 million term loan due March 19, 2021.

S&P said it placed the CCC- issuer credit rating on Steak n Shake Inc. on CreditWatch with positive implications.

S&P is withdrawing its issue-level rating on the company’s term loan because of the facility's retirement.

“The CreditWatch placement follows the development that Steak n Shake has repaid the remaining $153 million balance on its term loan due March 19, 2021, resolving its near-term refinancing needs,” S&P said in a news release.

“Critically, although Steak n Shake's operating performance has been acutely affected by the effects of the Covid-19 pandemic, it has been struggling for years due to execution challenges, intense competition, and changing consumer preferences.”

The absence of a significant debt burden provides the company with time and flexibility to execute its turnaround plan, the agency said.

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