INDIANAPOLIS, Aug. 7 /PRNewswire-FirstCall/ -- The Steak n Shake Company
(NYSE: SNS) today announced that Wayne L. Kelley, the Company's Interim Chief
Executive Officer, resigned from this position on August 4, 2008. Mr. Kelley
will retain his position as a member of the Company's Board of Directors.
On August 5, 2008 the Company's Board of Directors appointed Sardar
Biglari, the Chairman of the Board of Directors, to serve as the Company's
Chief Executive Officer.
Mr. Kelley commented, "I am pleased to pass the Chief Executive Officer
position to Sardar, who has demonstrated an incredible work ethic and
dedication to the Company since his election to the Board. As Chairman, he
has shown that he is willing and able to lead the Company through its
turnaround process and I believe he is the right Chief Executive Officer to
lead Steak n Shake into the future."
Mr. Biglari commented, "I would like to thank Wayne for his guidance over
the last several months. In reviewing Steak n Shake and beginning to implement
its restructuring, the Board and I concluded that to achieve the best results,
we need an executive who will be focused on restaurant operations. As a
consequence, we will seek a president with significant restaurant experience
to concentrate on improving restaurant operations, whereas I will assume the
CEO position, leading the organization principally from a strategic,
financial, and governance perspective. Concurrently, we are presently
undergoing a comprehensive examination of the company and are in the process
of implementing a restructuring program -- closing underperforming locations,
reducing G&A, shortening hours of operation in many locations, and other
initiatives -- all on the premise that Steak n Shake will be managed based on
cash flows in order to create long-term value for shareholders. Steak n Shake
is an iconic brand with greatly talented people working throughout the
organization. Because of all these advantages, I am confident we will regain
the chain's prior status as a great company. Details of our plan will be
disclosed within the next 60 days in a shareholder letter."
The Company will release its third quarter earnings in conjunction with
the filing of its Form 10-Q on Monday, August 11, 2008.
About Steak n Shake
Steak n Shake is a full-service, casual dining restaurant serving a core
menu of its famous STEAKBURGER(TM) sandwiches, thin 'n crispy french fries,
old fashioned hand-dipped milk shakes, chili, home style soups, fresh salads,
a variety of desserts and breakfast. All of the food is prepared to the
guest's order and served by friendly, well-trained associates. Steak n Shake
restaurants feature full-service dining areas, counter service and drive-thru
windows and most are open 24 hours a day, seven days a week.
Risks Associated with Forward-Looking Statements
Certain statements contained in this press release represent
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. In general, forward-looking statements include
estimates of future revenues, cash flows, capital expenditures or other
financial items, as well as assumptions underlying any of the foregoing.
Forward-looking statements reflect management's current expectations regarding
future events and use words such as "anticipate," "believe," "expect," "may"
and other similar terminology. A forward-looking statement is neither a
prediction nor a guarantee of future events or circumstances, and those future
events or circumstances may not occur. Investors should not place undue
reliance on the forward-looking statements, which speak only as of the date of
this report. These forward-looking statements are based on currently available
operating, financial and competitive information and are subject to various
risks and uncertainties. Our actual future results and trends may differ
materially depending on a variety of factors, many beyond our control,
including, but not limited to :the poor performance or closing of even a small
number of restaurants; our ability to attract and retain guests; he ability of
our franchisees to operate profitable restaurants; changes in guest
preferences, tastes and dietary habits; minimum wage rates; the availability
and cost of qualified personnel; fluctuations in food commodity prices and the
availability of food commodities; harsh weather conditions; unfavorable
publicity relating to food safety or food borne illness; our ability to comply
with the restrictions and covenants to our debt agreements; our ability to
renegotiate our debt agreements and refinance our current debt at similar
rates; our ability to comply with existing and future governmental
regulations; our ability to adequately protect our trademarks, service marks
and other components of our brand; and other risks identified in the periodic
reports we file with the Securities and Exchange Commission. Additional risks
and uncertainties not currently known to us or that are currently deemed
immaterial may also become important factors that may harm our business,
financial condition, results of operations or cash flows. We assume no
obligation to update forward-looking statements except as required in our
periodic reports.
.gif)
