Steak n Shake CEO Dunn quits after soft 3rd-Q filing

Nation's Restaurant News,  August 27, 2007  

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INDIANAPOLIS -- Peter Dunn has resigned as president, chief executive and a director of the full-service Steak n Shake burger specialty chain.

Steak n Shake said Dunn resigned after five years in the post to pursue other opportunities. Chairman Alan Gilman assumed Dunn's duties and titles pending a permanent replacement.

Dunn's resignation closely followed Steak n Shake's report of a $124,000 net profit for the third quarter ended July 4, compared with earnings of $7.3 million for the prior third quarter. In the latest quarter, the company took a charge of $3.3 million for the planned closing of 14 of the chain's nearly 477 corporate and franchised restaurants. Revenue grew 2.1 percent to $153.6 million while same-store sales fell 4.3 percent.

Two months ago an investment group said it would use the 9.5-percent share of Steak n Shake common stock it had acquired to push the company for an acquisition or other value enhancer. The group includes Dallas-based HBK Investments and Lone Star Funds, owner of Lone Star Steakhouse & Saloon Inc. Investor Robert J. Stetson also is a member of the group.

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