Higher beef prices. Lower profit. That's the equation

Lone Star Steakhouse & Saloon

(STAR) - Get Report

laid out Thursday in its second-quarter earnings guidance.

The Wichita, Kan.-based restaurant chain said it expects to earn 20 cents to 24 cents a share, citing a 16.7% increase in meat costs for comparable restaurants over the prior year during the first eight weeks of the quarter. In addition, Lone Star said its cost of sales as a percent of revenue will be 2.6% to 3% higher than in the first quarter.

The consensus estimate is for 34 cents a share, according to Thomson First Call.

The company also released same-store sales through May 18, which showed a 1% gain at its flagship chain.

"Higher beef prices will continue to affect our margins significantly," the company said.

Shares closed at $29.75 yesterday.